Stablecoin

Ethena USDe

USDe

USDC

Ethena

<p>The post <a href="https://coinpedia.org/news/ethena-usde-shakes-up-stablecoin-market-with-2-billion-surge-fate-of-usdt-usdc-in-danger/">Ethena USDe Rules Stablecoin Market with $2 Billion Surge: USDT &amp; USDC In Danger?</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>A newcomer has swiftly climbed the ranks in the stablecoin market, giving established players like USDT and USDC a run for their money.</p> 
<p><a href="https://coinpedia.org/price-analysis/here-is-whats-next-for-ethenas-ena-price-50-rise-in-the-next-5-days-possible/">USDe</a>, a recently launched stablecoin, has accumulated a market cap of $2 billion in a very short period. What sets USDe apart from its counterparts is its unique approach to stability, backed not by physical US dollars but rather by cryptocurrencies like <a href="https://coinpedia.org/price-prediction/market-price-prediction-ethereum-2019/">ETH</a> and <a href="https://coinpedia.org/price-prediction/bitcoin-price-prediction/">BTC</a>.&nbsp;</p> 
<p>Under the leadership of Julio Moreno, Head of Research at CryptoQuant, USDe has adopted a unique strategy that’s turning heads and sparking discussions about its potential impact on the stablecoin market.</p> 
<h2 class="wp-block-heading" id="h-usde-s-rapid-rise">USDe’s Rapid Rise</h2> 
<p><a href="https://coinpedia.org/news/ethena-labs-bitcoin-backed-usde-sparks-concern-terra-luna-deja-vu/">USDe’s</a> rapid climb to a $2 billion market cap has caught the attention of investors and industry experts alike. Unlike other stablecoins tied to fiat reserves or supported by cryptocurrency over-collateralization, USDe maintains its solid 1:1 peg to the US dollar through a method called “delta hedging staked Ethereum collateral.”</p> 
<p>This fresh approach shields USDe from the volatility of its underlying assets, ensuring stability even when the market is unpredictable.</p> 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
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   <p lang="en" dir="ltr">USDe is the fastest growing USD denominated asset in the history of crypto <a href="https://t.co/xgiRJjf96t">pic.twitter.com/xgiRJjf96t</a></p>— G | Ethena (@leptokurtic_) <a href="https://twitter.com/leptokurtic_/status/1777352115230224689?ref_src=twsrc%5Etfw">April 8, 2024</a>
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<p>Insights from Ethena Labs founder highlight USDe as the fastest-growing stablecoin since its launch. One key factor driving USDe’s success is its ability to generate returns for holders, a feature notably absent in leading stablecoins like USDT and USDC.</p> 
<p>USDe achieves this by leveraging funding payments from short positions on exchanges and ETH staking rewards, setting it apart from the competition.</p> 
<p>Read More: <a href="https://coinpedia.org/price-analysis/here-is-whats-next-for-ethenas-ena-price-50-rise-in-the-next-5-days-possible/">Here is What’s Next for Ethena’s (ENA) Price: 50% Rise in the Next 5 Days Possible!</a></p> 
<h2 class="wp-block-heading" id="h-innovation-at-play">Innovation at Play</h2> 
<p>Julio Moreno, Head of Research at CryptoQuant, stresses two critical factors for USDe investors: the size of the reserve fund relative to market cap and the keep rate, which reinvests generated yield.</p> 
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   <p lang="zxx" dir="ltr"><a href="https://t.co/64YRkjQehi">https://t.co/64YRkjQehi</a></p>— Julio Moreno (@jjcmoreno) <a href="https://twitter.com/jjcmoreno/status/1780336592403448045?ref_src=twsrc%5Etfw">April 16, 2024</a>
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<p>As USDe’s market cap grows, so do funding payments from short positions. Moreno recommends keeping the keep rate above 20% to ensure USDe’s stability and avoid the fate of other stablecoins like Terra’s UST.</p> 
<p>For example, with market caps of $5 billion, $7.5 billion, or $10 billion, the reserve fund ideally should be around $40 million, $60 million, and $80 million, respectively.</p> 
<p><strong>Long-Term Stability</strong></p> 
<p>USDe is swiftly adjusting to market changes to secure its long-term stability. By closely monitoring key metrics and actively managing risks, USDe aims to become a reliable option for investors. </p> 
<p>Also Read: <a href="https://coinpedia.org/price-analysis/top-3-cryptocurrencies-worth-investing-as-altcoin-is-around-corner/">Top 3 Cryptocurrencies Worth Investing As Altcoin is Around Corner</a></p>

Ethena USDe Rules Stablecoin Market with $2 Billion Surge: USDT & USDC In Danger?

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