The supply of yield-bearing stablecoins has grown dramatically following the GENIUS stablecoin bill, which prohibits issuers from offering yields on stablecoins, passed in July. Ethena USDe and Sky's USDS have emerged as significant beneficiaries, with USDe's circulating supply rising to 9.49 billion and USDS climbing to almost 4.81 billion. This increase positioned USDe and USDS in the third and fourth spots for stablecoin market capitalization, respectively. The surge in USDe has led to a nearly 60% increase in the price of Ethena's governance token, ENA, since mid-July. Analysts suggest investors are flocking to these yield-bearing options due to the GENIUS Act's restrictions. The overall stablecoin market has also expanded, projecting a potential supply of $300 billion by the end of the year. Yield-bearing stablecoins generate returns through staking and other mechanisms, with USDe offering an annual percentage yield of 8.16% and USDS 2.05%, both adjusted for inflation.

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