Ethena’s Partnership with Bybit Allows USDe Stablecoin to Serve as Perpetual Futures Collateral; ENA Aims for Breakout Over $1.03.
In the wake of its recent partnership announcement with Bybit, Ethena’s (ENA) price was increased to $1.0 earlier today. At the time of writing, ENA is trading 4% higher at $0.902, has a market capitalization of $1.37 billion, and is witnessing a phenomenal 45% surge in daily trading volumes to $632 million.
On Tuesday, May 7th, Ethena and cryptocurrency exchange Bybit announced their collaboration in which USDe stablecoin will be utilized as collateral for perpetual futures transactions on the platform. This will enable Bybit consumers to generate returns and attain “heightened capital efficiency.”Â
“The first-ever scalable synthetic dollar” is the native stablecoin of Ethena Labs, USDe. The platform integrated Bitcoin as a supporting asset for USDe last month, following the airdrop distribution of its governance token, ENA, to eligible users.
As stated in a press release, the integration of USDe with Bybit will also introduce spot trading pairs for Bitcoin and Ether with USDe. Furthermore, USDe will be accessible via the exchange’s Earn portal, enabling users to employ their synthetic dollars to pursue Bybit launchpool farming. Regarding the development, Guy Young, founder and CEO of Ethena Labs, commented:
“The integration of Ethereum with Bybit is a major step toward generating use cases for USDe.” USDe’s next wave of growth will be unlocked by offering it as collateral on Bybit, one of the most significant derivative venues in all cryptocurrency. This will enable USDe to challenge the existing stablecoin hegemony further with a product designed specifically for crypto-natives.
ENA Price Target of $10
Following its decline in early April of last month, the price of Ethena (ENA) skyrocketed to $1.50 within a week, attracting the attention of investors. In contrast, the ENA price retraced by nearly 50% over the past few weeks, falling to $0.80.Â
Ethena has recommenced its ascent to provide a breach above $1. The CEO of the cryptocurrency exchange BitMEX, Arthur Hayes, forecasted that the price of ENA could increase to $10.
As of April 29th, the ENA token peaked at $0.9425, a critical support level below which it has since retraced while maintaining a marginal position above the 50-period moving average. Consequently, the token’s present outlook remains neutral. The critical support and resistance levels to track are $1.03 and $0.85, respectively.
