It is business as usual for Ethena’s USDE, as the synthetic stableecoin seemed to weather the storm that the storm was brought to the market’s volatility from the white house’s trade wars.
USDE differs from stableecoins such a circle USDC because it is a synthetic stableecoin and is not supported by Fiat assets in a ratio of 1: 1. StableCecoin maintains its $ 1-stick by security of stableecoins and utilizing a uncovered cash and -Bearing trade, which involves consuming futures positions with large open interest rates available to stabilize the value.
USDE spent most of Monday trading day by maintaining his $ 1 stick with short dips down to $ 0.999. Data from CoingeCko shows that stableecoin’s market capital cap over $ 6 billion, up from approx. $ 5.7 billion a week ago.
Its degree of funding also remained positive according to data on the chain. Financing rates are crucial to maintaining USD’s PEG to the dollar and managing the equilibrium of the market.
A positive financing rate indicates that holders of long positions pay a small fee to holders of short positions. This suggests a slightly bullish market mood.
Another reason why USDE may have maintained its PEG is because of the interesting nature of the token, which is currently paying an apy of 10%, which has been stable over the past 30 days according to a dashboard from Dune Analytics .
Last year, some concern was raised about the size of Ethena’s reserve fund for USDE, where the research house Kryptoquant emphasized that the fund may not be sustainable over $ 4 billion.
However, this reserve fund has grown proportionately to USDE’s market capital and is $ 46.6 million at the end of 4. quarter 2024.
Crypto Market Safe Haven?
USDE’s stability plus yield -bearing appeal means investors could seek refuge in the token. Arthur Hayes, Chief Investment Officer at Digital Asset Investment Fund Maelstrom and co -founder of Bitmex, who expects BTC to slip to $ 75,000 in the coming weeks, has a record exposure for USDE.
“Maelstrom has raised the amount of stack ethena $ usde it has to detect levels and continues to make profits on multiple Shitcoin positions,” Hayes said in a blog post last week.
“We are still big net long, but if my feeling is correct, we will be placed with copious amounts of dry powder ready to buy dip on Bitcoin and a megapip on many quality skitcoins,” Hayes added. Hayes is an investor in and an adviser to Ethena.
