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Governance token of decentralized concern protocol Ethena (ENA) surged connected Tuesday to its strongest since precocious January arsenic the protocol has made a large measurement towards activate a interest power that would stock protocol revenues to token holders.
The token deed 87 cents successful the aboriginal hours, advancing 8.3% implicit the past 24 hours, CoinDesk information shows. It's up implicit 20% successful a week.
The latest surge occurred arsenic Binance, the largest crypto speech by volume, said connected aboriginal Tuesday it volition present trading with USDe, Ethena's $13 cardinal yield-generating token, connected its level starting Wednesday.
Listing the token connected apical exchanges is simply a cardinal request for Ethena to alteration the fee switch mechanism, sharing protocol profits with ENA token holders. The protocol made $54 cardinal successful revenues past period and implicit $480 cardinal since its motorboat successful precocious 2023, Token Terminal data shows.
"With the Binance USDE listing ENA interest power is going to get turned on. That unlocks $500m of buybacks," said Arthur Hayes, BitMEX co-founder and a salient capitalist successful Ethena.
Ethena catalysts
Besides the listing, there's been a batch going for Ethena recently.
Ethena's USDe token mushroomed to astir $13 cardinal from $5.5 cardinal in-mid July arsenic crypto investors pursuit yields. USDe, marketed arsenic a "synthetic dollar," uses bitcoin (BTC), ether (ETH) and Solana's SOL (SOL) arsenic backing assets, pairing them with an adjacent worth of abbreviated perpetual futures positions.
The strategy generates gross connected its backing derivative assets erstwhile the perpetual backing rates are affirmative and passes connected immoderate of the income arsenic output to investors. USDe presently pays out 6.5% annualized output for those who involvement their tokens, higher than accepted wealth marketplace funds and USDC, USDT lending rates connected DeFi lender Aave.
Ethena is besides taking portion successful the integer plus treasury fever that's captivating banal markets. StablecoinX and TLGY, 2 firms astir to merge and get listed connected Nasdaq, raised $530 cardinal to accumulate ENA tokens arsenic a nationalist vehicle.
The protocol besides enactment successful the booming stablecoin issuance business. It's launching the autochthonal stablecoin for Ethereum scaling web MegaETH and hinted astatine entering the competition to contented fashionable derivatives speech Hyperliquid's upcoming stablecoin.
Read more: Crypto for Advisors: The Mechanics of Generating Yield On-Chain
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