The supply of yield-bearing stablecoins has significantly increased following the passing of the GENIUS Act in July, which prohibits issuers from offering direct yields on stablecoins. The largest beneficiaries are Ethena USDe (USDe) and Sky’s USDS (USDS), which allow users to earn yields by staking their tokens. Since July 18, USDe's circulating supply has risen to 9.49 billion, while USDS has surged to almost 4.81 billion. This increased supply has led to notable price growth in Ethena’s governance token, ENA, which has rallied by nearly 60%. Analysts like Julio Moreno from CryptoQuant suggest that investors are switching to yield-bearing stablecoins as a workaround for the restrictions imposed by the GENIUS Act. The overall stablecoin market has also expanded, growing from $205 billion to $268 billion in 2025, with predictions that it could reach $300 billion by the end of the year. Yield-bearing stablecoins generate returns by various means, allowing tokenholders to earn an inflation-adjusted rate of return on their assets.

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