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- 1 Ethena Labs has revealed a significant development in the application of USDe, a novel digital currency, through its incorporation with Bybit.
- 2 The inclusion of support for USDe will allow users to trade perpetual contracts while potentially securing returns on the Ethena platform.
Ethena Labs has unveiled a pivotal advancement by adopting USDe, a fresh digital currency, through its alliance with Bybit, a top-tier crypto exchange. This collaboration has launched vital features designed to enhance the user experience and boost the adoption of USDe in crypto trading.
Excited to share one of the most important developments for USDe adoption to date
— Ethena Labs (@ethena_labs) May 7, 2024
USDe will be integrated into @Bybit_Official:
i) Collateral to trade perpetuals while potentially capturing yield
ii) BTC and ETH spot pairs with zero trading fees
iii) Within the Earn platform pic.twitter.com/zDDO2WdeNf
According to Ethena Labs, over $20 Billion in collateral is currently employed in margining perpetual contracts without earning any yield. The integration of USDe offers users the unique opportunity to reduce their funding expenses using their collateral. It is an unprecedented move in cryptocurrency and is set to revolutionize trading dynamics.
Moreover, Ethena Labs highlighted in an earlier tweet that the popularity of stablecoins like USDT and USDC is mainly due to their role as currency in major trading pairs on centralized exchanges.
Currently there is >20bn of USD collateral being used to margin perpetuals which is capturing no yield
— Ethena Labs (@ethena_labs) May 7, 2024
Integrating USDe and allowing users to potentially offset their funding costs with their collateral is a first in crypto history, and will fundamentally reshape trading
Introducing USDe to these crucial spot pairs marks a significant move towards expanding its use beyond decentralized finance (DeFi) to the most active trading platforms. Ethena is set to offer the necessary infrastructure to enable users to easily earn yields in USD through a simple, one-click process on Bybit.
Ethena Price Soars 8% Amid The News: Analysts Predict More Room For Growth!
The incorporation of USDe on Bybit has been met with optimism, contributing to an over 8% intraday increase in its price. At the time of writing, ENA was exchanging hands at $0.935.
The daily chart indicates a breakout from a falling wedge pattern, suggesting the potential end of a downward trend. Analysts predict the token could climb nearly 40% to reach the $1.3 mark before experiencing another downturn.
From a technical point of view, the RSI was at 54.4, while the SMA was hovering around the 50-point mean line. The occurrence of a bullish crossover between these lines on the chart supports the likelihood of continued upward movement for the cryptocurrency.
Additionally, the broader market’s recovery could enhance the token’s performance.
Conclusion
Ethena Labs’ integration of USDe with Bybit has sparked a positive market response, with an 8% price surge to $0.935. The move aims to improve user experience and increase USDe’s use in trading. Currently, $20 Billion in collateral isn’t yielding returns, but USDe’s integration could change that, offering cost savings.
Technically, a falling wedge breakout suggests a trend reversal, with potential growth up to $1.3. The RSI and SMA indicators show a bullish crossover, hinting at further gains, especially as the broader market recovers, which could bolster ENA’s upward trajectory.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
