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. Here’s what happened…
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 Ethena’s 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 dollar’s 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 USDe’s circulating supply beyond its current $2.5 billion, allowing it to better meet market demand. Ethena’s 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, Ethena’s 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.
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Su Zhu’s 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 token’s price spiked by over 30%, with its value now hovering around $0.040.
longed $3ac at .0321 pic.twitter.com/w1KLTfNu52
— 朱溯 🐂 (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, Zhu’s endorsement has revitalized interest.
The coin’s 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.
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