Ethena USDe

Joe Biden

USDe

Ethena

<p class="is-style-lead">Ethena’s (ENA) price has crashed by 61% from its all-time high and is nearing its record low as concerns about its stablecoin rise.&nbsp;</p> 
<p><a href="https://crypto.news/price/ethena/" target="_blank" rel="noreferrer noopener">ENA</a> peaked at $1.13 in June and has dropped to $0.440, bringing its market cap from over $2 billion to $755 million.&nbsp;</p> 
<figure class="wp-block-image size-full">
 <picture loading="lazy" decoding="async" class="wp-image-14286634"> 
  <source type="image/webp" srcset="https://crypto.news/app/uploads/2024/07/ENA-Price.png.webp"> 
  <img loading="lazy" decoding="async" width="1856" height="1086" src="https://crypto.news/app/uploads/2024/07/ENA-Price.png" alt="Ethena price"> 
 </picture> 
 <figcaption class="wp-element-caption">
  Ethena (ENA) price chart
 </figcaption>
</figure> 
<p> You might also like: <a href="https://crypto.news/jump-capital-wallet-stables-launch/"> Jump Capital-backed stablecoin wallet Stables rolls out services in Europe </a> </p> 
<h2 class="wp-block-heading" id="polymarket-users-expect-ethena-usde-to-maintain-its-peg">Polymarket users expect Ethena USDe to maintain its peg</h2> 
<p>Meanwhile, Ethena’s USDe stablecoin has maintained its peg in the past few months as its assets jumped to over $3.39 billion. It has become the fourth-biggest stablecoin in the industry after Tether, USD Coin, and Dai.</p> 
<p>Participants in Polymarket, the fast-growing betting platform, believe that the USDe token will not lose its peg this year. The probability of its <a href="https://polymarket.com/event/ethena-exploit-depeg-in-2024?tid=1721741545614" target="_blank" rel="">collapse</a> has dropped from 16% in June to just 5% this week.</p> 
<p>This bet has attracted over $72,440 in predictions. If it crashes below 90 cents for 12 hours or more, it will resolve on December 31 this year or before that.</p> 
<p>Polymarket has become a popular betting platform, and its users have made several accurate predictions. For example, users recently predicted that Joe Biden would avoid the general election. Polymarket’s base also predicted that spot <a href="https://crypto.news/ethereum-name-service-jumps-7-on-day-spot-ethereum-etfs-launch/" target="_blank" rel="noreferrer noopener">Ethereum ETFs</a><strong> </strong>will start trading before July 26.</p> 
<h2 class="wp-block-heading" id="usde-offers-an-exciting-9-2-yield">USDe offers an exciting 9.2% yield</h2> 
<p>The USDe stablecoin differs from Tether and USD Coin in that fiat currencies do not back it. Instead, it is an algorithmic stablecoin whose peg is <a href="https://ethena-labs.gitbook.io/ethena-labs/solution-overview/yield-explanation" target="_blank" rel="">maintained</a> by spot crypto assets.&nbsp;</p> 
<p>Holders love it because of its substantial yield, which is 9.4%, higher than U.S. government and corporate bonds.&nbsp;</p> 
<p>It generates this yield by staking assets in Ethereum and by the funding and basis spread generated from derivative positions. Over 256,000 users hold the USDe token.&nbsp;</p> 
<p>USDe’s mechanics have led to comparisons with Terra USD, which promised huge returns but collapsed in 2022, costing investors over $40 billion.&nbsp;</p> 
<p>Many stablecoins have lost their pegs in the past. Terra USD, which was pegged at $1, has crashed to $0.019 while USDX lost its peg and was trading at $0.7953.&nbsp;</p> 
<p>USDe has grown recently through <a href="https://crypto.news/ethena-price-forms-inverse-hs-amid-usde-integrations/" target="_blank" rel="noreferrer noopener">integration</a> with multiple platforms. It recently integrated with Skroll, a native zero-knowledge EVM platform for Ethereum. This partnership means that Skroll users will benefit from faster transactions, lower fees, and better security features.&nbsp;</p> 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper"> 
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">Ethena introduces USDe to Scroll, a synthetic dollar that doesn’t rely on traditional banking infrastructure. As a crypto-native, scalable solution for money, USDe delta-hedges crypto collateral to produce a synthetic dollar in USDe with a separate value-accruing token in sUSDe.</p>— Scroll 📜 (@Scroll_ZKP) <a href="https://twitter.com/Scroll_ZKP/status/1815733679664296147?ref_src=twsrc%5Etfw" target="_blank" rel="">July 23, 2024</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div>
</figure> 
<p> You might also like: <a href="https://crypto.news/trump-strategic-bitcoin-reserve-unlikely/"> Polymarket: Trump announcing a strategic Bitcoin reserve unlikely </a> </p>

Polymarket: Ethena’s USDe stablecoin will not lose its peg in 2024

Table of Contents

crypto.news

Other articles published on Jul 23, 2024

Chainlink Price Increase Reflects Investor Behavior

BlackRock Bitcoin ETF Sees Largest $523M Inflow in 4 Months

ETH ETF Launch: How Will It Influence Ethereum and Altcoins?

Mt. Gox Sparks Market Frenzy with $3.2B Bitcoin Withdrawal in Two Hours

Will Shiba Inu (SHIB) Overcome Its Current Downturn?

Mt. Gox Cold Wallet Transfer Sparks Market Concerns

Join our free newsletter for daily crypto updates!