MegaETH’s USDm Supply Plunges More Than 95% From May Peak

MegaETH’s USDm stablecoin supply has contracted to about $18 million as declining activity on the network reduces the asset base generating yield for MEGA token buybacks and burns, according to research from Castle Labs. 

The current supply is more than 95% below USDm’s roughly $600 million May high. Castle Labs attributed the decline to lower usage of the MegaETH network.

At $18 million in circulation, USDm could produce about $650,000 in annual yield based on a Secured Overnight Financing Rate (SOFR) of approximately 3.6%, the research estimated.

MegaETH developed USDm with Ethena and deploys the stablecoin’s reserves into BlackRock’s BUIDL fund. Yield earned on those reserves is used to buy back and burn MEGA tokens.

Source: Castle Labs