Ether native token of Ethereum (Eth)gaining ground against bitcoin
Because the Authentic Imminent Act is likely to prohibit stablecoins which promise interesting yields, according to Markus Thielen, founder of 10x Research.
The Binance Ether-Bitcoin ratio, representing the price worded in Ether BTC, increased by 5.96% to 0.02670 on Tuesday, recording its best performance since May 13, according to Data Source TradingView.
The increase has marked a bullish resolution in the range of several weeks and suggests an outperformance of the ether continues to come. Ether’s worded dollar price increased by more than 4%, exceeding $ 3,100 for the first time since February.
According to Markus Thielen, founder of 10x Research, the main engine of Ether prices overvoltage is apparently the growing anticipation that the Geritis law, or the American stablecoin bill, will adopt, allowing American Stablecoin issuers to pay interest.
“This would potentially strengthen the importance of Ethereum within the digital asset ecosystem,” said Thielen in a shared customer note with Coindesk.
Thielen added that Gentis Act highlighted the synthetic USDE of $ 5 billion from Ethena, which reaches the Cadrance or the Treasury of Delta and the transport of arbitration in perpetual term equivalent to the quantity of ETH received from users as guaranteed. This is how it generates a yield on the USDE.
The long-term theory is that the short-circuit operation adds to the lowering pressures on the term market and the ceilings, the difference between term contracts and cash prices.
“Ethena is currently representing around 4% of Ethereum’s 26 billion interests, and selling constantly, he has dropped down the prices of ETH,” said Thielen.
Ethena has already contacted the American Commission for Securities and Exchange (SECOND) To seek the clarity of synthetic dollars, such as the USDE. The team would have argued that the synthetic dollar operated as an instrument of payment rather than a guarantee and does not fall under the scope of the general law and the stable law, which regulates the payment transmitters.
Ethena has its headquarters in Lisbon, Portugal, with new dollars entries mainly from outside the United States, it remains to be seen how it corresponds to the regulatory image evolving in the United States
“If Ethena had to comply with the Stablecoin American bill, it could be forced to stop buying Ethereum. However, the market can interpret this dynamic differently-in-USDT continues to rally, supported by the rise in Ethereum financing rates,” said Thielen.
The Act on Engineering, which obtained the approval of the Senate in June with bipartite support, is expected to go to a floor vote in the House by Thursday.
Read more: The American Senate adopts the acting genius to regulate the stablecoins, marking the victory of the cryptographic industry
