Ethena’s USDe has been launched on Solana through LayerZero Labs, the team responsible for the omni-chain interoperability protocol LayerZero.
This development has implications for ENA, Ethena Labs’ native token. According to a post by Ethena Labs, OFT—SOL is now a backing asset for USDe, pending a community vote.
August 7th marks Ethena's Solana integration:
– USDe deployed on Solana thanks to @LayerZero_Labs OFT
– SOL onboarded as a backing asset for USDe, subject to governance
– Solana Sats Campaign
— Ethena Labs (@ethena_labs) August 7, 2024
Deployment on Solana allows Solana users to transact in USDe and accrue Ethena’s native rewards with sUSDe. It is estimated that fewer than 10% of the stablecoins on Solana, whose total value amounts to $3.5 billion, let users accrue rewards.
Moreover, the team will propose Solana’s SOL back USDe next week. If approved, this will create an additional $2-3 billion of open interest across major exchanges, making USDe more scalable.
Ethena price prediction
ENA, Ethena’s native token, recorded a 30% dip over the past week. CMC data shows it is relatively flat and trading for $0.2773 at press time. Technical indicators suggest that its bear run is not over. Moving averages are a strong sell. The 50-, 30-, 20-, and 10-day exponential moving averages are declining in that order, suggesting a bearish outlook.
The Relative Strength Index (14) is an indicator to watch, currently at 30.6. If it drops below 30, it will be oversold, and buying could ensue, potentially reversing the bearish trend.
The Momentum (10) is −0.16, which means ENA’s price has decreased by 0.16 units in the past ten days. However, the drop is declining, which indicates a buying opportunity. The interpretation and significance of these values depend on the context of the overall market.
ENA hit an all-time low of $0.56 at the end of June, then started showing signs of digging. At the time, some analysts expected it to drop to a new all-time low of $0.34. It is now below that.
Ethena’s selling points
Ethena is an Ethereum-based synthetic dollar protocol that aims to provide a crypto-native solution for money that doesn’t rely on traditional infrastructure. It also has the ‘Internet Bond,’ a globally accessible savings tool denominated in USD.
USDe, Ethena’s synthetic dollar, provides a scalable, censorship-resistant, and stable crypto-native solution with full, transparent on-chain backing. Four months after its public launch, it surpassed a $3 billion supply.
The USD backs the stablecoin, with Ethena’s collateral and delta-hedging derivatives ensuring peg stability.
