ENA rallies 8% as Ethena’s USDe stablecoin tops $1B on centralized exchanges
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Digital currencies recorded modest gains over the past day as the global crypto market cap soared 0.57% to $3.86 trillion.
Meanwhile, Ethena leads the upside with an over 8% increase, fueled by bullish ecosystem news.
The project, known for its dominant yield-bearing stablecoin, announced a significant milestone on X.
Notably, USDe supply on centralized exchanges (CEXs) has surpassed $1 billion.
That reflects growing adoption and confidence among the cryptocurrency community.
The remarkable achievement triggered optimism, with Ethena’s governance token surging over 8% over the past 24 hours.
While most tokens presented limited price actions, ENA soared from $0.6774 to $0.733 after the stablecoin updates.
The $1B supply milestone raised eyebrows since the project only launched early this year.
That reflects impressive demand and increased recognition of stablecoins’ importance in the evolving financial landscape.
Investors and traders look attracted and confident in Ethena’s stablecoin model, which promises stability and yield opportunities.
USDe differs from stablecoins like USDT and Circle’s USDC.
Ethena’s is a synthetic dollar that uses futures and digital tokens for backing, while the established options rely on fiat for stability.
USDe leverages the delta-neutral strategy to hedge against market volatility, offering high yields on cryptocurrency-native savings.
According to the official blog:
Hedging the price change risk of the backing asset in the same size minimizes fluctuations in the backing asset price, as the change in value of the backing asset is generally offset by the change in value of the hedge.
This enables the synthetic USD value of the backing assets to remain relatively stable in most market conditions.
What it means for the stablecoin market
Stablecoins are among the most utilized tools within the cryptocurrency market.
The offer investors and traders dollar-pegged tokens that they can move and use to transact across exchanges.
Meanwhile, the sector has seen notable changes lately.
Besides the US’s clear regulations on stablecoin through the GENIUS Act, attention has switched to yield-bearing alternatives.
Market players want assets that can generate income while idle on trading and investment platforms.
By surpassing $1B, Ethena’s USDe cements its status as a recognized stablecoin after reclaiming the 3rd spot recently.
While still far behind USDT and USDC, such a milestone confirms that Ethena has gained traction faster than most of its rivals.
Moreover, it shows users’ willingness to explore new stablecoin models that incorporate stability and rewards.
Also, the latest USDe revamp kept the stablecoin on the crypto community’s radar.
ENA price outlook
The alt trades at $0.7209 after a slight dip from intraday highs.
ENA is now up 5% on its daily chart, signaling potential upside continuation.
The crucial nearest resistance is $0.8401.
A decisive move past this obstacle could catalyze substantial rallies to $0.9314.
That would open the doors toward the psychological mark at $1.
However, buyers should amplify trading volumes to support smooth rallies.
A sudden selling pressure could push prices to the support barrier between $0.55 and $0.60.
The post ENA rallies 8% as Ethena’s USDe stablecoin tops $1B on centralized exchanges appeared first on Invezz
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