The crypto world is buzzing with excitement after a new proposal was made by the Ethena community regarding its synthetic dollar, USDe. The proposal suggests using Solana (SOL) as a reserve asset, boosting the price of Ethena (ENA) by 17% to $0.39, bringing its market cap over $1.06 billion. Meanwhile, the founder of Three Arrows Capital, Su Zhu, has revealed that he opened a long position on an altcoin project, pushing its price higher. Hereās what happenedā¦
Solana Set to Power USDe as Reserve Asset
Earlier today, the Ethena community introduced a proposal to use Solana as a supportive asset for the USDe synthetic dollar. This move closely mirrors the risk management mechanism already in place for Ethenaās BTC and ETH perpetual futures. Including Solana in the asset pool is considered a significant step in the DeFi world, diversifying the assets backing USDe.
In addition to Solana, the proposal also suggests adding Binance Liquid Staked SOL (BNSOL) and Bybit Liquid Staked SOL (bbSOL) as reserve assets for USDe. This expansion is designed to increase the synthetic dollarās stability and adoption across the decentralized finance ecosystem.
What Solana as a Reserve Asset Means
By incorporating Solana as a reserve asset, the protocol can enhance revenue via SOL funding rates and unlock $2-3 billion in open positions. Experts suggest that this move could push USDeās circulating supply beyond its current $2.5 billion, allowing it to better meet market demand. Ethenaās USDe synthetic dollar has already gained traction, reaching a $2.5 billion market cap, and positioning itself as a competitor to Tether.
This diversification and support for USDe come at a time when Ethena has partnered with BlockRock and Securitize to launch UStb, further strengthening its position in the stablecoin market. ENA, Ethenaās native token, surged by 17% today, reaching a value of $0.3869, and its market cap crossed the $1 billion mark once again. With further momentum, ENA could hit price targets of $0.5080 and $0.69. Experts believe a successful breach of these levels could lead ENA to a new all-time high of $1.50.
Advertisement Banner
Su Zhuās Long Position Boosts 3AC Altcoin
On the other hand, Su Zhu, the co-founder of Three Arrows Capital (3AC), made waves by announcing that he has opened a long position on a meme coin. Following this announcement, the tokenās price spiked by over 30%, with its value now hovering around $0.040.
longed $3ac at .0321 pic.twitter.com/w1KLTfNu52
ā ę±ęŗÆ š (3/AC) (@zhusu) October 14, 2024
Su Zhu revealed on X that he initiated the position on October 14th, buying the token at $0.0321. The announcement sparked speculation and excitement within the crypto community. This meme coin is gaining attention, largely due to its ties to 3AC, and despite its rocky launch with a 60% drop, Zhuās endorsement has revitalized interest.
The coinās 24-hour trading volume surged by over 700%, but after reaching a peak of $0.0444, it began retracing. At the time of writing, the token was trading at $0.0364, with a daily low of $0.02947 and a high of $0.0444.
- https://twitter.com/Thebitjournal_
- https://www.linkedin.com/company/the-bit-journal/
- https://t.me/thebitjournal
Follow us on Twitter and LinkedIn and join our Telegram channel to be instantly informed aboutĀ breakingĀ news!
The price predictions and financial analysis presented on this website are for informational purposes only and do not constitute financial, investment, or trading advice. While we strive to provide accurate and up-to-date information, the volatile nature of cryptocurrency markets means that prices can fluctuate significantly and unpredictably.
You should conduct your own research and consult with a qualified financial advisor before making any investment decisions. The Bit Journal does not guarantee the accuracy, completeness, or reliability of any information provided in the price predictions, and we will not be held liable for any losses incurred as a result of relying on this information.
Investing in cryptocurrencies carries risks, including the risk of significant losses. Always invest responsibly and within your means.
