Ethena’s Bullish Pump
ENA, the cryptocurrency of Ethena, has defied the downward trend that many altcoins are experiencing and has seen a 10% increase in value at the beginning of this week. What has caused ENA to perform so well? And can this upward trend be sustained?
The ENA/BTC trading pair established its local bottom last week, and Ethena’s Growth Director announced on Twitter that there will be important news released in the coming days. After community members shared this information, the ENA/BTC trading pair saw a significant increase on Monday. Subsequently, Ethena Labs officially announced on their Twitter account on Tuesday that USDe will be integrated into the Bybit exchange. Bybit is the fourth-largest futures exchange in terms of trading volume in April. As a result, ENA surged to $1 in the afternoon, reaching a new high since May.
This collaboration will support spot trading pairs with USDe and allow Bybit users to use USDe as collateral for perpetual trading, enabling them to achieve higher capital efficiency by offsetting a significant portion of their funding costs. Additionally, users will be able to enhance their earnings by providing USDe to Bybit’s lending products.
If Bybit receives positive feedback after supporting USDe trading pairs, other exchanges may also quickly support USDe, leading it to compete with stablecoins like USDT and USDC.
To ensure the success of Ethena, there must be a sustained demand for long leveraged positions to maintain high funding rates, as this is the main source of the project’s revenue. Furthermore, a decrease in funding rates would lower the earnings for holders, and if the rates become negative, Ethena would suffer losses.
Although the high rates driven by the bull market have supported the adoption of USDe in early 2024, the token’s supply has been decreasing since April 13 when the cryptocurrency market started its downward trend.
The continuous decline in rates indicates that the market frenzy has temporarily subsided. While the integration of USDe into exchanges can help increase the demand for the token, it will be difficult to salvage the product if the returns further decline.
Tags:
2023 market trends
Bankless
Bybit
ENA
USDC
USDe
USDT
altcoins
Bitcoin
trend
Source Link:
https://www.theblockbeats.info/news/53414
Disclaimer: The views expressed in this article solely represent the author’s opinion and do not constitute investment advice.
Original Article Link:
https://www.bitpush.news/articles/6690894
Related News:
[Bithumb Daily Market Trends] Battle at $62,000, bears may have opened the downtrend channel
Binance Research: A Review of the Cryptocurrency Market in April 2024
Bankless: Will Bitcoin Follow the Rise of TradFi?
[Bithumb Daily Market Trends] Increasing number of hodlers, BTC inflows to exchanges at the lowest level in nearly a decade!
What’s Behind the 94% Token Burn and the Dramatic Rise of $CEL?
