Recent cryptocurrency price increases have led to significant market activity, including Ethena's 13% rise. The development of the synthetic stablecoin USDe has been a key factor in this growth.
USDe Synthetic Stablecoin Rising
In July 2023, the synthetic stablecoin USDe saw explosive growth, with its supply increasing by 75% to $9.5 billion. This allowed it to overtake FDUSD and become the third-largest stablecoin in the market.
Market Trends and ENA Predictions
Rising cryptocurrency prices have pushed perpetual futures funding rates higher, enabling Ethena to deliver yields of up to 37%. This created a feedback loop: stronger yields attract more USDe minting, boosting protocol revenue to $36.5 million in July, nearly double June's $19.96 million.
Market and Technical Analysis of Ethena
A key event on the horizon is the $100 million ENA unlock scheduled for August 5, representing 2.7% of the total supply. While such releases often spark volatility, ENA has shown resilience, with its price holding firm above $0.60.
With the rapid expansion of USDe and ENA's positive technical setup, the community is closely watching how the token reacts post-August 5 unlock. If price stability holds, ENA could further solidify its reputation in the synthetic dollar space.
