The crypto world continues to develop with new projects and innovations every day. One of the projects that attracted attention recently was ENA, the local cryptocurrency of the Ethereum-based decentralized finance (DeFi) project Ethena. As the Ethena platform entered into direct competition with Tether, a giant name in the stablecoin market, the value of the ENA cryptocurrency rose rapidly. ENA increased by 25% to $0.35, bringing its market value to over $920 million. Daily transaction volume increased by 180% and reached $233 million. Meanwhile, critical developments are also on the agenda for Avalanche, which is behind the altcoin AVAX. In parallel with these developments, there was also an increase in this crypto. It is worth noting that these two cryptocurrencies are common altcoins in Turkey.
Is Ethena’s USDe an alternative to Tether?
USDe, the stablecoin of the Ethena Finance platform, which achieved great success in a short time, made a rapid entry into the market. Reaching a market value of $3 billion in just a few months, USDe has become one of the rapidly growing projects in the DeFi world. Famous cryptocurrency investor Eugene Ng Ah Sio stated that Ethena is in direct competition with Tether and that this competition is not only limited to DeFi but is on its way to becoming a legitimate competitor in the stablecoin market.
Ethena’s UStb stablecoin, launched in partnership with BlockRock and Securitize, strengthened the platform’s market position and placed USDe among the leading stablecoin candidates. As analysts note, the USDe stablecoin is performing very well in terms of both value proposition and distribution. It allows users to earn returns by depositing $1, offering a delta-neutral position between both the ETH staked position and the ETH short position. Currently, sUSDe offers the highest yield among stablecoins, with sustainable annual return rates ranging from 10% to 13%.
Such rapid growth of USDe is also notable as it reached $3.7 billion in total locked value (TVL) in just 7 months. This growth proves why altcoin Ethena stands out in the DeFi world. Additionally, by implementing a distribution strategy similar to Tether’s USDT, Ethena gains a huge advantage in the stablecoin market.
USD impact on central exchanges
Bybit, the second largest centralized exchange worldwide, has added automatic yield-generating features to its USDe stablecoin. In this way, users had the opportunity to use a higher-yielding stablecoin without any difficulties. There are currently approximately $38.6 billion worth of stablecoins on centralized exchanges, and if even just 20% of that amount shifted to USDe, USDe’s share of the market could almost quadruple. According to analyst Eugene Ng Ah Sio, this potential growth could further solidify USDe’s position in the market.
Ethena’s USDe stablecoin will also benefit significantly from interest rate cuts by the US Federal Reserve (Fed). The current rate of return is 5-8% above the Fed funds rate, which is attracting yield-seeking capital to USDe. The Fed is expected to cut interest rates by 2 percentage points over the next 24 months, which will further increase the attractiveness of the USDe. Additionally, as markets rise, risk appetite increases and demand for leverage increases, which pushes funding rates up. When all these dynamics come together, they reveal the true value of Ethena’s product.
Crypto analysts think that the Fed’s interest rate cuts will accelerate USD growth again. Additionally, analysts predict that the launch of Ethena’s UStb stablecoin will further accelerate USDe adoption. These developments may make USDe an indispensable option in the cryptocurrency market.
Big increase in the price of altcoin AVAX
Another notable development in the cryptocurrency market came from the Avalanche (AVAX) front. AVAX price increased by 10% following Avalanche Foundation’s repurchase agreement with Luna Foundation Guard (LFG). AVAX approached the $30 level, increasing its market value to over $11.5 billion.
Avalanche Foundation has reached an agreement to buy back all AVAX tokens sold in 2022 to Luna Foundation Guard, which is associated with the Terra blockchain. While this agreement was still awaiting approval from the bankruptcy court, it caused a huge wave of rise in the market. The agreement will prevent LFG from selling its AVAX tokens as part of the bankruptcy process and protect the Avalanche ecosystem.
LFG held approximately 1.97 million AVAX tokens before going bankrupt in the summer of 2022. These tokens were purchased with the aim of powering Terra’s UST stablecoin. Upon completion of the agreement, Avalanche Foundation will continue to grow and develop its ecosystem by repurchasing these tokens.
Will the altcoin price continue to rise?
This massive buyback move by the Avalanche Foundation caused a significant increase in the price of AVAX. Currently, AVAX price is trading at $28.49, up 9.33%. On the technical chart, AVAX is giving upward signals by breaking the downward trend that has been going on for several months. Relative Strength Index (RSI) value is 49.8 and Moving Average Convergence Divergence (MACD) is at positive 0.19. These indicators indicate that further rises in AVAX price may be possible.
Additionally, the Avalanche blockchain is starting to become a platform of choice for traditional financial players. This week, Colombia-based neobank Littio migrated from Ethereum to the Avalanche blockchain. This signals that AVAX may attract more investors in the future.
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For the rest of the article, Those 2 Altcoins in the Turks’ Basket Jumped with These Developments!