Stablecoins
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Big News Coming From Franklin Templeton 🔥
📌Franklin Templeton has announced that users of its Benji Investments platform can now convert USDC stablecoin to U.S. dollars to fund their investment in the Franklin Onchain U.S. Government Money Fund.
#CryptoNews #FranklinTempleton #USDC #Stablecoins
📌Franklin Templeton has announced that users of its Benji Investments platform can now convert USDC stablecoin to U.S. dollars to fund their investment in the Franklin Onchain U.S. Government Money Fund.
#CryptoNews #FranklinTempleton #USDC #Stablecoins
Ripple President Says XRP ETF Would Make a Lot of Sense
Ripple President Monica Long claims that the company's much-hyped stablecoin is likely to launch this year
During a recent interview with CNBC, Ripple President Monica Long said that an XRP exchange-traded fund (ETF) would make "a lot of sense."
"If you think about it, only XRP and Bitcoin have regulatory clarity on status in the U.S. XRP has been a top 10 asset by market cap and is about the top 5 if you look at daily traded volume. So, I think that it will make a lot of sense," she said.
Long's statement comes after Ripple CEO Brad Garlinghouse recently predicted that the launch of a spot XRP ETF was seemingly "inevitable." During a recent #CNBC interview, he clarified that approving several altcoin ETFs would make sense since investors typically do not want to have exposure to a single coin. At the same time, he believes that the upcoming Ethereum ETFs will be very successful.
Long expects to see even more institutional interest in the space. Sophisticated players are entering the relatively nascent crypto market with the help of #BitcoinETFs or tokenized assets.
Ripple's stablecoin is expected this year
As reported by U.Today, Ripple recently made a foray into the ultra-competitive stablecoin sector.
The yet-to-be-named stablecoin project is expected to go live by the end of 2024 according to Long.
"We are working on all the things you need to do in order to bring a product like this to market," she said.
Long claims that there will still be a need for the $XRP token even after Ripple launches its stablecoin project since the former will still be able to serve as a bridge asset.
The Ripple executive has pointed to various projections showing that the #stablecoin market could reach more than $3 trillion in cumulative market cap within the next five years.
#Stablecoins are seeing great demand since they provide easy access to US dollars in various parts of the world. Moreover, stablecoins are convenient for conducting payments.
#BnbAth
Ripple President Monica Long claims that the company's much-hyped stablecoin is likely to launch this year
During a recent interview with CNBC, Ripple President Monica Long said that an XRP exchange-traded fund (ETF) would make "a lot of sense."
"If you think about it, only XRP and Bitcoin have regulatory clarity on status in the U.S. XRP has been a top 10 asset by market cap and is about the top 5 if you look at daily traded volume. So, I think that it will make a lot of sense," she said.
Long's statement comes after Ripple CEO Brad Garlinghouse recently predicted that the launch of a spot XRP ETF was seemingly "inevitable." During a recent #CNBC interview, he clarified that approving several altcoin ETFs would make sense since investors typically do not want to have exposure to a single coin. At the same time, he believes that the upcoming Ethereum ETFs will be very successful.
Long expects to see even more institutional interest in the space. Sophisticated players are entering the relatively nascent crypto market with the help of #BitcoinETFs or tokenized assets.
Ripple's stablecoin is expected this year
As reported by U.Today, Ripple recently made a foray into the ultra-competitive stablecoin sector.
The yet-to-be-named stablecoin project is expected to go live by the end of 2024 according to Long.
"We are working on all the things you need to do in order to bring a product like this to market," she said.
Long claims that there will still be a need for the $XRP token even after Ripple launches its stablecoin project since the former will still be able to serve as a bridge asset.
The Ripple executive has pointed to various projections showing that the #stablecoin market could reach more than $3 trillion in cumulative market cap within the next five years.
#Stablecoins are seeing great demand since they provide easy access to US dollars in various parts of the world. Moreover, stablecoins are convenient for conducting payments.
#BnbAth
#BTC☀ Sees Massive Inflows as Institutional Investors Pour in $1 Billion Daily*
A recent report by WuBlockchain, citing research from CryptoQuant, reveals that a significant new whale wallet is accumulating approximately $1 billion worth of Bitcoin daily. This surge is attributed to institutional investors purchasing Bitcoin and transferring it to custodial wallets.
Over the past 30 days, long-term holders have accumulated 70,000 BTC, with whale demand increasing at a rate of 4.4% per month. This growing demand is expected to drive a sustained price rally for Bitcoin.
Several factors contribute to this rebound:
- *Growing Conviction Among Long-Term Holders*: The combined balances of large investors and permanent holders have significantly increased, indicating a rising conviction in Bitcoin's long-term potential.
- *$1 Billion Daily Inflows*: New investors are injecting substantial capital into Bitcoin, signaling growing interest and confidence in the market.
- *Increased Demand from Spot ETFs in the USA*: The approval of spot Bitcoin ETFs in the USA has boosted demand, offering investors a more accessible way to gain exposure to Bitcoin.
Additionally, the exhaustion of heavy selling pressure and the reset of the unrealized profit ratio to 0% indicate the onset of a new accumulation phase. Ethereum has also seen a surge in demand since the approval of spot ETH ETFs in the USA on May 20, with long-term holders and major investors increasing their ETH purchases.
While Bitcoin and Ethereum show positive signs, the growth trajectory of #Stablecoins in liquidity has not yet been restored
For more latest information reach us at 2eeter ❌👉 #Imtiazzavi
Top gainers
#Jasmyusdt⚠️⚠️ #Vib
$JASMY $NOT $HIGH
A recent report by WuBlockchain, citing research from CryptoQuant, reveals that a significant new whale wallet is accumulating approximately $1 billion worth of Bitcoin daily. This surge is attributed to institutional investors purchasing Bitcoin and transferring it to custodial wallets.
Over the past 30 days, long-term holders have accumulated 70,000 BTC, with whale demand increasing at a rate of 4.4% per month. This growing demand is expected to drive a sustained price rally for Bitcoin.
Several factors contribute to this rebound:
- *Growing Conviction Among Long-Term Holders*: The combined balances of large investors and permanent holders have significantly increased, indicating a rising conviction in Bitcoin's long-term potential.
- *$1 Billion Daily Inflows*: New investors are injecting substantial capital into Bitcoin, signaling growing interest and confidence in the market.
- *Increased Demand from Spot ETFs in the USA*: The approval of spot Bitcoin ETFs in the USA has boosted demand, offering investors a more accessible way to gain exposure to Bitcoin.
Additionally, the exhaustion of heavy selling pressure and the reset of the unrealized profit ratio to 0% indicate the onset of a new accumulation phase. Ethereum has also seen a surge in demand since the approval of spot ETH ETFs in the USA on May 20, with long-term holders and major investors increasing their ETH purchases.
While Bitcoin and Ethereum show positive signs, the growth trajectory of #Stablecoins in liquidity has not yet been restored
For more latest information reach us at 2eeter ❌👉 #Imtiazzavi
Top gainers
#Jasmyusdt⚠️⚠️ #Vib
$JASMY $NOT $HIGH
M^0, a decentralized stablecoin minting protocol, has raised $35 million in a Series A funding round led by Bain Capital Crypto.
M^0 is a protocol that allows approved entities to create a stablecoin called M, which is backed by U.S. Treasuries and is overcollateralized, meaning that there is more value in the collateral than the value of the stablecoin.
#Stablecoins #stablecoin #Wintermute #ETHETFsApproved #StartInvestingInCrypto
M^0 is a protocol that allows approved entities to create a stablecoin called M, which is backed by U.S. Treasuries and is overcollateralized, meaning that there is more value in the collateral than the value of the stablecoin.
#Stablecoins #stablecoin #Wintermute #ETHETFsApproved #StartInvestingInCrypto
The Central Bank of the United Arab Emirates (CBUAE) has indeed announced the launch of a new system for supervising and licensing stablecoins. This initiative aims to bolster regulatory oversight and ensure the stability and security of stablecoin operations within the UAE's financial system. Here are the key points:
1. **Regulatory Oversight:** The new system is designed to provide a structured regulatory framework for stablecoins, enhancing oversight and mitigating potential risks associated with their use.
2. **Licensing:** Stablecoin issuers will need to obtain licenses to operate within the UAE. This measure is expected to ensure that only compliant and secure stablecoin operations are conducted in the region.
3. **Stability and Security:** By implementing this system, the CBUAE aims to maintain financial stability and protect consumers. It will help in monitoring and controlling the flow of stablecoins to prevent fraud, money laundering, and other illicit activities.
4. **Innovation and Growth:** The regulatory clarity provided by this system could foster innovation and growth in the digital asset space, attracting more businesses and investors to the UAE.
This move aligns with global trends where regulators are increasingly focusing on the regulation of digital assets to ensure financial stability and consumer protection.
#CBUAE #Stablecoins #CryptoNews #BinanceLaunchpool
1. **Regulatory Oversight:** The new system is designed to provide a structured regulatory framework for stablecoins, enhancing oversight and mitigating potential risks associated with their use.
2. **Licensing:** Stablecoin issuers will need to obtain licenses to operate within the UAE. This measure is expected to ensure that only compliant and secure stablecoin operations are conducted in the region.
3. **Stability and Security:** By implementing this system, the CBUAE aims to maintain financial stability and protect consumers. It will help in monitoring and controlling the flow of stablecoins to prevent fraud, money laundering, and other illicit activities.
4. **Innovation and Growth:** The regulatory clarity provided by this system could foster innovation and growth in the digital asset space, attracting more businesses and investors to the UAE.
This move aligns with global trends where regulators are increasingly focusing on the regulation of digital assets to ensure financial stability and consumer protection.
#CBUAE #Stablecoins #CryptoNews #BinanceLaunchpool
🚨 UAE Central Bank to Launch New System for Supervising and Licensing Stablecoins
The Central Bank of the United Arab Emirates (CBUAE) has announced the introduction of a new system to supervise and license stablecoins. This initiative aims to enhance regulatory oversight and ensure the stability and security of stablecoin operations within the UAE's financial system.
#CBUAE #Stablecoins #CryptoNews
The Central Bank of the United Arab Emirates (CBUAE) has announced the introduction of a new system to supervise and license stablecoins. This initiative aims to enhance regulatory oversight and ensure the stability and security of stablecoin operations within the UAE's financial system.
#CBUAE #Stablecoins #CryptoNews
MiCA's tough love: How the new regulations are elevating the industry above TradFi
😡I WAS SO MAD but then i figured MiCA (AKA the master mfers) is actually making crypto safer than traditional finance.
🧵Below is a thread comparing requirements and regulations for banks (AKA the mfers) and #Stablecoins issuers.
🪙Nature of reserves
💎Stablecoins: Reserves are tied to the issued tokens & to be held in liquid and safe assets (like fiat currencies).
🏦#Banks include a mix of central bank deposits and (supposedly) high-quality liquid assets (government bonds, cash), designed to meet short-term liquidity needs and long-term stability.
🧐If a stablecoin issuer releases 10 million #tokens, they must hold 10 million euros or equivalent liquid assets in reserve, while a bank only needs to hodl 10% of it (1 million euros) at the central bank !
💰Segregation of funds
💎Stablecoins: Strict segregation between reserve assets and operational funds to protect against misuse.
💰Banks: While operational funds and reserves are managed separately, banks have more flexibility in using their assets, provided they meet regulatory ratios.
🧐A stablecoin issuer must maintain separate accounts for reserve funds and operational funds, ensuring clear segregation and protection.
In contrast, banks can use their reserves more dynamically as long as they maintain the required liquidity and capital adequacy ratios.
📂Audit and transparency
💎Stablecoins: Frequent and detailed audits specific to reserve adequacy are mandatory. Issuers must provide transparency reports detailing the reserve assets.
🏦Banks: Regular supervisory reviews and stress tests are conducted ; these audits cover various aspects of operations beyond reserves.
🧐Example: A stablecoin issuer might release a quarterly audit report from an independent auditor confirming that the reserves are intact and properly managed.
Meanwhile, banks undergo comprehensive financial audits and stress tests to ensure overall stability and compliance with regulatory requirements.
💸Redemption and liquidity
💎Stablecoins: Holders have direct redemption rights to exchange stablecoins for fiat currency at any time, at par value
🏦Banks: Deposit insurance schemes and central bank facilities ensure depositor confidence and liquidity but there is no direct 1:1 redemption for all liabilities
🧐Example: A user holding 1 million stablecoins should be able to exchange them for 1 million euros without any loss in value, whereas banks benefit from deposit insurance that protects depositors up to a certain limit (100k in France).
🏁Conclusion🏁
While both stablecoin issuers under #MiCA and traditional banks are required to maintain reserves, banks generally have it easier compared to stablecoin issuers.
Banks have more flexibility in the types of assets they can hold as reserves and greater latitude in how they manage these assets, provided they meet regulatory ratios.
They benefit from well-established deposit insurance schemes and central bank facilities that ensure liquidity and depositor confidence, without the need for direct 1:1 redemption for all liabilities.
In contrast, stablecoin issuers face stricter requirements for reserve backing, segregation of funds, frequent audits, and direct redemption rights, making their regulatory burden more stringent and demanding.
#TetherUSD #USDC
🧵Below is a thread comparing requirements and regulations for banks (AKA the mfers) and #Stablecoins issuers.
🪙Nature of reserves
💎Stablecoins: Reserves are tied to the issued tokens & to be held in liquid and safe assets (like fiat currencies).
🏦#Banks include a mix of central bank deposits and (supposedly) high-quality liquid assets (government bonds, cash), designed to meet short-term liquidity needs and long-term stability.
🧐If a stablecoin issuer releases 10 million #tokens, they must hold 10 million euros or equivalent liquid assets in reserve, while a bank only needs to hodl 10% of it (1 million euros) at the central bank !
💰Segregation of funds
💎Stablecoins: Strict segregation between reserve assets and operational funds to protect against misuse.
💰Banks: While operational funds and reserves are managed separately, banks have more flexibility in using their assets, provided they meet regulatory ratios.
🧐A stablecoin issuer must maintain separate accounts for reserve funds and operational funds, ensuring clear segregation and protection.
In contrast, banks can use their reserves more dynamically as long as they maintain the required liquidity and capital adequacy ratios.
📂Audit and transparency
💎Stablecoins: Frequent and detailed audits specific to reserve adequacy are mandatory. Issuers must provide transparency reports detailing the reserve assets.
🏦Banks: Regular supervisory reviews and stress tests are conducted ; these audits cover various aspects of operations beyond reserves.
🧐Example: A stablecoin issuer might release a quarterly audit report from an independent auditor confirming that the reserves are intact and properly managed.
Meanwhile, banks undergo comprehensive financial audits and stress tests to ensure overall stability and compliance with regulatory requirements.
💸Redemption and liquidity
💎Stablecoins: Holders have direct redemption rights to exchange stablecoins for fiat currency at any time, at par value
🏦Banks: Deposit insurance schemes and central bank facilities ensure depositor confidence and liquidity but there is no direct 1:1 redemption for all liabilities
🧐Example: A user holding 1 million stablecoins should be able to exchange them for 1 million euros without any loss in value, whereas banks benefit from deposit insurance that protects depositors up to a certain limit (100k in France).
🏁Conclusion🏁
While both stablecoin issuers under #MiCA and traditional banks are required to maintain reserves, banks generally have it easier compared to stablecoin issuers.
Banks have more flexibility in the types of assets they can hold as reserves and greater latitude in how they manage these assets, provided they meet regulatory ratios.
They benefit from well-established deposit insurance schemes and central bank facilities that ensure liquidity and depositor confidence, without the need for direct 1:1 redemption for all liabilities.
In contrast, stablecoin issuers face stricter requirements for reserve backing, segregation of funds, frequent audits, and direct redemption rights, making their regulatory burden more stringent and demanding.
#TetherUSD #USDC
🚨🚨🚨Will Binance Delist Stablecoins in Europe? CEO Richard Teng Made a Breaking Statement!🚨🚨🚨
Binance, the world's largest cryptocurrency exchange by trading volume, announced that it will soon limit the availability of stablecoins, which are considered “unregulated” by the European Union (EU).
#RichardTeng , CEO of Binance, addressed speculation that some of Binance's stablecoins may be delisted. In his statement, Teng said the following:
“I would like to take a moment to answer one of the biggest questions being asked about our strategy for the upcoming MiCA stablecoin rules.
You can be sure that Binance will not delist unauthorized stablecoins directly, but will only limit their availability to certain products for European Economic Area (EEA) users. Updates about the regulated stablecoins will be shared soon.”
There has not yet been an official response from Binance to the question of which stablecoins fall into the “unregulated” category.
As stablecoins are regulated in Europe, Binance said that only tokens issued by ”regulated companies" will be available to the public. “Some existing stablecoins may not fall into this category and will therefore be subject to certain restrictions,” the company added.
The company stated that the rules for stablecoins, as outlined in the EU's Crypto Asset Markets Regulation (MiCA), will come into force at the end of June. “This will be the first step into the new regulatory framework and will have a significant impact on the stablecoin market in the European Economic Area,” the statement said.
#binance #BNB #Stablecoins
Binance, the world's largest cryptocurrency exchange by trading volume, announced that it will soon limit the availability of stablecoins, which are considered “unregulated” by the European Union (EU).
#RichardTeng , CEO of Binance, addressed speculation that some of Binance's stablecoins may be delisted. In his statement, Teng said the following:
“I would like to take a moment to answer one of the biggest questions being asked about our strategy for the upcoming MiCA stablecoin rules.
You can be sure that Binance will not delist unauthorized stablecoins directly, but will only limit their availability to certain products for European Economic Area (EEA) users. Updates about the regulated stablecoins will be shared soon.”
There has not yet been an official response from Binance to the question of which stablecoins fall into the “unregulated” category.
As stablecoins are regulated in Europe, Binance said that only tokens issued by ”regulated companies" will be available to the public. “Some existing stablecoins may not fall into this category and will therefore be subject to certain restrictions,” the company added.
The company stated that the rules for stablecoins, as outlined in the EU's Crypto Asset Markets Regulation (MiCA), will come into force at the end of June. “This will be the first step into the new regulatory framework and will have a significant impact on the stablecoin market in the European Economic Area,” the statement said.
#binance #BNB #Stablecoins
Stablecoins in the Crypto Ecosystem: Functions, Risks, and Policy Considerations
Stablecoins have garnered significant attention due to their rapid growth and increasing global use cases. These digital units of value, designed to maintain a stable value relative to official currencies or other assets, have become integral to the wider crypto-asset ecosystem. Initially serving as a "parking space" for crypto volatility, stablecoins like Tether and USD Coin now play a crucial role in liquidity provision for crypto trading and decentralized finance (DeFi) applications.
Despite their rising prominence, stablecoins are not without risks. Their reserve assets, crucial for maintaining value stability, link them directly to the traditional financial system. This connection poses potential contagion risks, especially if a significant stablecoin were to fail. The crash of TerraUSD in May 2022, which saw its value plummet and its market capitalization shrink drastically, highlighted the vulnerability of even "stable" assets.
Currently, stablecoins fall short as practical means of payment in the real economy due to issues with transaction speed, cost, and redemption terms. Regulatory uncertainty also hampers their broader adoption, particularly within the EU. Effective regulation is thus paramount to mitigate financial stability risks. The EU's proposed Markets in Crypto-assets (MiCA) Regulation aims to establish a harmonized framework for stablecoin issuance and services, addressing both their potential and risks.
As stablecoins continue to evolve, robust regulatory oversight is essential to ensure their stability and to protect the broader financial system from potential contagion effects. Effective regulation will support responsible innovation, enabling stablecoins to fulfill their role in the digital financial landscape safely. #Stablecoins
Stablecoins have garnered significant attention due to their rapid growth and increasing global use cases. These digital units of value, designed to maintain a stable value relative to official currencies or other assets, have become integral to the wider crypto-asset ecosystem. Initially serving as a "parking space" for crypto volatility, stablecoins like Tether and USD Coin now play a crucial role in liquidity provision for crypto trading and decentralized finance (DeFi) applications.
Despite their rising prominence, stablecoins are not without risks. Their reserve assets, crucial for maintaining value stability, link them directly to the traditional financial system. This connection poses potential contagion risks, especially if a significant stablecoin were to fail. The crash of TerraUSD in May 2022, which saw its value plummet and its market capitalization shrink drastically, highlighted the vulnerability of even "stable" assets.
Currently, stablecoins fall short as practical means of payment in the real economy due to issues with transaction speed, cost, and redemption terms. Regulatory uncertainty also hampers their broader adoption, particularly within the EU. Effective regulation is thus paramount to mitigate financial stability risks. The EU's proposed Markets in Crypto-assets (MiCA) Regulation aims to establish a harmonized framework for stablecoin issuance and services, addressing both their potential and risks.
As stablecoins continue to evolve, robust regulatory oversight is essential to ensure their stability and to protect the broader financial system from potential contagion effects. Effective regulation will support responsible innovation, enabling stablecoins to fulfill their role in the digital financial landscape safely. #Stablecoins
New global #stablecoin #regulations are being discussed at the #G20 summit. These rules aim to provide more stability and security in the crypto market. #Stablecoins #cryptolaw
🚨🚨🚨Alert for all crypto users, If you are holding stable coin of any type then do not forget to read full post otherwise may you lose your money 🚨🚨🚨
On 2024-06-30 (UTC+3), new MiCA stablecoin rules come into effect in the EEA. Binance will implement several changes for EEA users to comply with these #Regulations .
Unauthorized Stablecoins will face phased restrictions:
Binance Convert: Only sell options will be available.
Spot Trading: Pairs will remain available until further notice.
Wallet: Custody and withdrawal/deposit services will continue.
General Product Restrictions:
#Rewards will switch to Regulated Stablecoins, BNB, or non-stablecoin tokens.
Spot Copy Trading: Ends on 2024-06-29 (UTC+3).
Margin: New borrowings and margin #collateral involving Unauthorized Stablecoins will be blocked.
Simple Earn: New subscriptions blocked by 2024-06-29 (UTC+3).
Binance Loans: New subscriptions blocked; existing loans remain unaffected.
Auto-Invest: New subscriptions blocked.
Dual Investment: New subscriptions blocked by 2024-06-29 (UTC+3).
Binance Pay: Sending/receiving Unauthorized #Stablecoins blocked.
NFT: Purchases blocked.
Gift Card: Only available in Regulated Stablecoins or other digital assets.
For detailed product impacts, visit Binance's official announcement.
Follow @MU_Traders for more news.
#MU_Traders $PEPE $NOT $BTC
On 2024-06-30 (UTC+3), new MiCA stablecoin rules come into effect in the EEA. Binance will implement several changes for EEA users to comply with these #Regulations .
Unauthorized Stablecoins will face phased restrictions:
Binance Convert: Only sell options will be available.
Spot Trading: Pairs will remain available until further notice.
Wallet: Custody and withdrawal/deposit services will continue.
General Product Restrictions:
#Rewards will switch to Regulated Stablecoins, BNB, or non-stablecoin tokens.
Spot Copy Trading: Ends on 2024-06-29 (UTC+3).
Margin: New borrowings and margin #collateral involving Unauthorized Stablecoins will be blocked.
Simple Earn: New subscriptions blocked by 2024-06-29 (UTC+3).
Binance Loans: New subscriptions blocked; existing loans remain unaffected.
Auto-Invest: New subscriptions blocked.
Dual Investment: New subscriptions blocked by 2024-06-29 (UTC+3).
Binance Pay: Sending/receiving Unauthorized #Stablecoins blocked.
NFT: Purchases blocked.
Gift Card: Only available in Regulated Stablecoins or other digital assets.
For detailed product impacts, visit Binance's official announcement.
Follow @MU_Traders for more news.
#MU_Traders $PEPE $NOT $BTC
💥Ethena’s USDe Surpassing FDUSD After Hitting $3 Billion Supply in Just Four Months🚀
Ethena's synthetic dollar, USDe, has skyrocketed to a $3 billion supply within just four months of its launch, showcasing the increasing demand for stablecoins in the decentralized finance (DeFi) sector.
USDe, a dollar-pegged stablecoin from Ethena Labs, has reached a market valuation of approximately $3.02 billion, surpassing First Digital’s FDUSD, which stands at $2.9 billion. This achievement makes USDe the fourth-largest stablecoin. Ethena’s founder, Guy Young, proudly noted that USDe became the fastest USD asset in crypto history to reach this milestone.
What is USDe?
USDe is built on the Ethereum blockchain and is fully backed on-chain. It generates returns by staking ETH and managing derivatives and can integrate with other blockchain protocols. According to EtherScan, USDe is held by about 13,235 unique addresses. Ethena’s smart contract holds the largest share with 1.22 billion USDe (over 40% of the total supply), while the LP staking address holds 511.2 million USDe (16.8%). Significant holders also include Pendle Finance, Morpho, and Zircuit.
Concerns and Criticisms
Despite its rapid growth, some experts have raised concerns. DeFi expert Andre Cronje warned that USDe might face a collapse similar to TerraUSD (UST) due to its use of perpetual contracts and reliance on yield-based collateral. CryptoQuant founder Ki Young Ju also questioned USDe’s ability to maintain a delta-neutral strategy during bear markets.
Despite these concerns, Ethena continues to attract DeFi enthusiasts. Offering a 33.5% annual percentage yield (APY) for USDe, the platform has already gained 200,200 users, with new participants needing an invite code to join.
USDe’s rapid rise to a $3 billion supply underscores the growing demand for innovative stablecoin solutions. Ethena's success highlights the potential for synthetic stablecoins and sets a new standard in the DeFi space, signaling a promising future for wider adoption.
$ENA #ENA #ETHETFsApproved #Stablecoins #altcoins
Ethena's synthetic dollar, USDe, has skyrocketed to a $3 billion supply within just four months of its launch, showcasing the increasing demand for stablecoins in the decentralized finance (DeFi) sector.
USDe, a dollar-pegged stablecoin from Ethena Labs, has reached a market valuation of approximately $3.02 billion, surpassing First Digital’s FDUSD, which stands at $2.9 billion. This achievement makes USDe the fourth-largest stablecoin. Ethena’s founder, Guy Young, proudly noted that USDe became the fastest USD asset in crypto history to reach this milestone.
What is USDe?
USDe is built on the Ethereum blockchain and is fully backed on-chain. It generates returns by staking ETH and managing derivatives and can integrate with other blockchain protocols. According to EtherScan, USDe is held by about 13,235 unique addresses. Ethena’s smart contract holds the largest share with 1.22 billion USDe (over 40% of the total supply), while the LP staking address holds 511.2 million USDe (16.8%). Significant holders also include Pendle Finance, Morpho, and Zircuit.
Concerns and Criticisms
Despite its rapid growth, some experts have raised concerns. DeFi expert Andre Cronje warned that USDe might face a collapse similar to TerraUSD (UST) due to its use of perpetual contracts and reliance on yield-based collateral. CryptoQuant founder Ki Young Ju also questioned USDe’s ability to maintain a delta-neutral strategy during bear markets.
Despite these concerns, Ethena continues to attract DeFi enthusiasts. Offering a 33.5% annual percentage yield (APY) for USDe, the platform has already gained 200,200 users, with new participants needing an invite code to join.
USDe’s rapid rise to a $3 billion supply underscores the growing demand for innovative stablecoin solutions. Ethena's success highlights the potential for synthetic stablecoins and sets a new standard in the DeFi space, signaling a promising future for wider adoption.
$ENA #ENA #ETHETFsApproved #Stablecoins #altcoins
