The post Ethena’s ENA Cryptocurrency Gains Market Momentum appeared on BitcoinEthereumNews.com.

Ethena, an Ethereum-based decentralized finance (DeFi) initiative, has seen a remarkable increase in its cryptocurrency ENA, positioning it as a contender against Tether‘s stablecoin. ENA’s value surged by 25% to $0.35, while its market cap surpassed $920 million, and daily trading volume skyrocketed by 180% to $233 million. How Does USDe Compete with Tether’s USDT? In recent developments, Ethena’s USDe stablecoin has achieved a market valuation of $3 billion, marking it as one of the most rapidly expanding DeFi projects. Industry expert Eugene Ng Ah Sio highlighted that USDe is poised to rival Tether, indicating a shift from its DeFi origins to a credible stablecoin alternative. Will USDe Gain from Federal Rate Cuts? Ethena’s USDe offers users an opportunity to attain a delta-neutral investment through a $1 allocation split between staked ETH and a short position on ETH, generating substantial returns. Currently, it presents yields between 10% to 13% APY, thereby attracting significant user engagement. The USDe stablecoin positions itself to lure investments with yields outpacing the Federal Reserve’s funding rates by 5-8%. As the Fed initiates a cycle of rate reductions, this yield gap is anticipated to expand, enhancing USDe’s appeal. Ethena’s USDe stands out in the competitive market for several reasons: High yield rates significantly above traditional stablecoins. Robust structure attracting both retail and institutional investors. Rapid growth in total value locked (TVL) reaching $3.7 billion in just seven months. The growing interest in Ethena’s offerings, particularly its USDe stablecoin, signals a shift in investor behavior and market dynamics. With its competitive advantages and innovative structure, USDe is set to solidify its presence in the cryptocurrency landscape. Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research. Source:…

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Filed under: News - @ October 12, 2024 10:42 pm