BitMEX co-founder Arthur Hayes has made a bold prediction regarding ENA, the governance token of Ethena, suggesting it could reach $10. This forecast aligns with the recent declaration that Bybit, a cryptocurrency exchange, will adopt USDe, the synthetic dollar produced by Ethena Labs, as a collateral asset.

The integration involves adding Bitcoin and Ether spot trading pairs, which could have a meaningful influence on its market dynamics and adoption.

Shit like this is how we get to $ENA = $10

Yachtzee https://t.co/ZI6yvN39VF

— Arthur Hayes (@CryptoHayes) May 7, 2024

Integration of USDe on Bybit

Ethena Labs’ partnership with Bybit has included the integration of USDe into Bybit’s trading infrastructure to be used as collateral for perpetual futures on the platform. This development is expected to contribute to the utility of USDe through the enablement of diversified trading strategies and enhance users’ capital efficiency.

The integration will also bring USDe in spot trading pairs with major cryptocurrencies such as Bitcoin and Ether, thus expanding its coverage and utilities within the crypto trading community.

Besides being used as collateral, USDe will participate in Bybit’s Earn product, where users can partake in launchpool farming. By providing more ways to earn a yield on crypto assets, this initiative is thought to bring the platform a larger pool of users for both new and experienced traders.

ENA Price Trend

After the news was released, the market reacted positively, with ENA recording a significant price appreciation. According to real-time data from CoinMarketCap, ENA’s price today is $0.935793, with a 24-hour trading volume of $436,359,986. Ethena’s token is up 4.08% in the last 24 hours, and it holds the 63rd position in market capitalization rankings, currently valued at $1,422,697,071.

The collaboration, as well as Hayes’ prediction, has generated a lot of attention from both investors and speculators regarding the potential growth of the value of ENA. The integration of USDe with Bybit improves the visibility of USDe and its use. It makes it a strong competitor in the stablecoin market that has been dominated by other currencies like USDT.

ENA/USD 24-hour price chart(source: CoinMarketCap)

Guy Young, CEO and founder of Ethena Labs, showed great optimism about this development, seeing it as a crucial step in UDE utility and further growth. He pointed out that this alliance will allow the synthetic dollar to open new doors for traders looking for yield while trading on one of the top crypto exchanges. This initiative seeks to disrupt the current stablecoin monopoly with a custom-made product intended for crypto consumers.

Young had been teasing this collaboration on an episode of the Unchained podcast.Given the considerable market size of traders utilizing stablecoins like USDT on centralized exchanges, he emphasized the importance of collateralized stablecoins in trading.

USDe’s Market Potential

Although recent weakness in the cryptocurrency market and political issue affecting demand for this type of leveraged trading, the integration of USDe with Bybit will help USDe get back on the growth path. After its rapid early rise to a market cap of $2.39 billion, it has plateaued at around $2.29 billion over the past month. This partnership will help to draw more users and the USDe as stablecoin and trading asset ecosystem will expand.

At present, USDe is also traded in some of the biggest crypto exchanges, such as Binance, Deribit, OKX, and Bitget. A 7% portion of collateral is held by Bybit only, but the use of such an initiative and pioneering its implementation can cause the adoption of such initiatives and cooperation only among other platforms.

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The post Arthur Hayes Predicts ENA to Hit $10 as Bybit Integrates USDe appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am