USD ranked in the top 3 after surging to 9.3 billion dollars

USDe has increased by 75% in less than three weeks, surpassing USDS to become the third largest stablecoin in the world, after USDT and USDC. The success of USDe comes from the "delta neutral" model, combining holding assets like BTC, ETH, SOL and short selling futures contracts to generate yields. When the funding rate leans towards the short side, yields previously exceeded 60%/year before falling below 5%, still attractive enough to attract billions of USD.

However, this model depends on the conditions of the derivatives market, which can be easily affected if funding reverses or liquidity decreases. Notably, the hedging activity of USDe increases the demand for USDT — its biggest competitor. If the upward momentum holds, USDe could surpass USDC within two years, although previous algorithmic stablecoins have collapsed rapidly.