It is as usual for the USDE of Ethena, because the synthetic stablecoin seemed to resist the storm caused by the volatility of the market for the commercial war threats of the White House.
The USDE differs from the stablescoins of this USDC circle because it is a synthetic stablecoin and not supported by Fiat assets to a 1: 1. Stablecoin ratio maintains its ankle of $ 1 by guaranteeing the floors and taking advantage of a trade covered with liquidity and carry, which implies taking on a long -term positions with great open interest available to stabilize the value.
The USDE spent most of the Monday negotiation day to maintain its ankle by $ 1, with brief drops at $ 0.999. Coingecko data show that Stablecoin’s market capitalization exceeded $ 6 billion, compared to around $ 5.7 billion a week ago.
Its financing rate has also remained positive according to data on the chain. Funding rates are crucial to keeping USDE PEG to the dollar and market balance management.
A positive funding rate indicates that long post holders pay a small sum to busy post holders. This suggests a slightly optimistic market feeling.
Another reason why the USDE may have maintained its ankle is due to the interest in the nature of the token, which is currently paying a 10%APY, which has been stable in the last 30 days according to a table of edge of an analytics.
Last year, a certain concern was raised as to the size of the Ethena reserve fund for the USDE, with cryptocurrency research research stressing that the fund may not be durable more than $ 4 billion.
However, this reserve fund has developed in proportion to the market capitalization of the USDE and amounts to $ 46.6 million at the end of the fourth quarter of 2024.
Crypto Market Safe Haven?
The stability of the USDE plus the appeal on the yield means that investors could take refuge in the token. Arthur Hayes, director of investments at Digital Asset Investment Fund Maelstrom and co-founder of Bitmex, who expects BTC to slip at $ 75,000 in the coming weeks, has a record exhibition at the USDE.
“Maelstrom increased the amount of USDE Ethhena $ that he holds at the registration levels and continues to benefit from several profits in Shitcoin position,” said Hayes in a blog article last week.
“We are always very clear, but if my feeling is correct, we will be positioned with large amounts of dry powder ready to buy the dip on bitcoin and a mega dim on many quality shitcoins,” added Hayes. Hayes is an investor and advisor to Ethena.
