Ethena Labs has successfully integrated its USDe stablecoin with the Solana blockchain, significantly enhancing its market reach.

As part of its expansion, Ethena has broadened its collateral options for minting USDe to include both Ethereum (ETH) and Bitcoin (BTC), along with the newly added Solana (SOL).

With these developments, USDe's supply on Solana has reached approximately $524,000, contributing to a total circulating supply of over $3.1 billion, making it the fourth-largest stablecoin in the market.

The current supply of USDe has surged to over 3.1 billion tokens, reflecting a remarkable 50% increase since April.

This integration allows users to buy and sell USDe on Solana, leveraging the blockchain's fast transaction speeds and low costs.

A governance vote is anticipated next week to determine whether SOL will be permitted as collateral for USDe loans, although immediate shorting of SOL may be limited due to insufficient historical data.

Despite recent market fluctuations, Conor Ryder, Head of Research at Ethena Labs, confirmed that USDe has maintained its peg to the U.S. dollar, effectively managing redemptions within 30 basis points.

This week, USDe experienced nearly $100 million in redemptions, attributed to a broader market selloff that affected major cryptocurrencies.

The market capitalization of USDe currently exceeds $3 billion, reflecting its growing popularity among crypto users.

USDe operates differently from traditional stablecoins, utilizing derivative hedging strategies and collateral positions instead of relying solely on fiat backing.

Ethena's founder, Guy Young, has defended the stability of USDe's yield, asserting that it is publicly verifiable and derived from legitimate revenue sources.