Ethereum 
$2,447 ENA, the native cryptocurrency of Ethena-based DeFi project, has experienced a strong rise as the platform offers direct stablecoin competition to industry giant Tether. ENA price increased by 25% to $0.35 and its market value rose to over $920 million. Additionally, ENA’s daily trading volume increased by 180% to $233 million.
USDe Will Rival Tether’s USDT
Over the last few months, Ethena Finance has increased its USDe stablecoin to a market cap of $3 billion, making it the fastest-growing DeFi project in history. Popular crypto trader Eugene Ng Ah Sio stated that Ethena will enter into direct competition with Tether and USDe will transform from a DeFi-based stablecoin to a legitimate stablecoin.
Ethena’s USDe stablecoin allows users to gain a delta-neutral position by depositing $1; This position is divided into staked ETH and ETH short position and a return is provided. Currently, sUSDe offers the highest sustainable yield among stablecoins, ranging from 10-13% APY annually. These features contributed to USDe’s rapid growth as $3.7 billion in total value was locked in just 7 months after its launch.
Additionally, Ethena has been successful in distribution, and Bybit, the world’s second largest centralized exchange, has integrated automatic return features for the USDe stablecoin into the platform. In this way, users can access superior stablecoin collateral without any obstacles.
USD to Benefit from Fed Rate Cuts
As of the current yield situation, Ethena’s USDe offers a 5-8% premium above the Fed funds rates, attracting capital seeking yield. With the Fed interest rate cut cycle that started last month, this gap will widen further, making USDe more attractive to investors.
The crypto analyst added that the launch of USDe’s UStb stablecoin will further increase the adoption of USDe. Additionally, ENA price has increased by 60% in the last month and the market is seeing a significant recovery.
Ethena’s USDe stablecoin gains a competitive advantage in the market with its secure structure and high return rates. The ability to compete directly with major rivals like Tether could accelerate USDe adoption. Offering attractive return opportunities for investors may make USDe an important option in the stablecoin market.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
