{"id":11274,"date":"2024-05-09T01:17:49","date_gmt":"2024-05-09T01:17:49","guid":{"rendered":"https:\/\/www.bitrabo.com\/discover\/ethena-partners-with-bybit-is-this-an-attack-on-usdt-and-usdc\/"},"modified":"2024-05-09T01:21:06","modified_gmt":"2024-05-09T01:21:06","slug":"ethena-partners-with-bybit-is-this-an-attack-on-usdt-and-usdc","status":"publish","type":"post","link":"https:\/\/www.bitrabo.com\/discover\/ethena-partners-with-bybit-is-this-an-attack-on-usdt-and-usdc\/","title":{"rendered":"Is Ethena Posing a Threat to USDT and USDC with the Bybit Partnership?"},"content":{"rendered":"\n<p>An analyst forecasts a looming threat for traditional fiat-backed stablecoins such as USDT and USDC amidst the rise in popularity of Ethena&#8217;s USDe following its collaboration with Bybit, a platform for perpetual trading within the crypto realm.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Ethena_Joins_Forces_with_ByBit\"><\/span>Ethena Joins Forces with ByBit<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Unlike other prominent stablecoins that are fiat-backed, USDe is a &#8220;synthetic dollar&#8221; supported by various assets, primarily staked ETH derivatives and short positions from centralized exchanges like Binance.<\/p>\n<p>Ethena, the creator of USDe, heralded the partnership with Bybit, expressing optimism about the collaboration&#8217;s potential to revolutionize cryptocurrency trading. Traders can earn a yield on USDe, which can serve as collateral for futures trading. Furthermore, users can engage in spot trading pairs with Bitcoin and Ethereum without incurring fees.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Impact_on_USDTs_Dominance\"><\/span>Impact on USDT&#8217;s Dominance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Despite the positive outlook for ENA and the projected surge in USDe demand, an analyst remains dubious. The arrangement is viewed as a direct challenge to the dominance of popular stablecoins, USDT and USDC, commonly utilized across various crypto perpetual trading platforms.<\/p>\n<p>Ethena&#8217;s enticing offerings through integration with Bybit could sway traders away from USDT and USDC. By opting for USDe over the traditional stablecoins, traders can earn a yield that offsets funding fees, with the current double-digit yield standing at 15%. This practice of providing &#8220;free money&#8221; for holding USDe is expected to impact the prevailing dominance of USDT and USDC.<\/p>\n<p>However, concerns arise regarding the sustainability of these high yields, with critics questioning the adequacy of the $10 million Reserve Fund in safeguarding against depegging when yields decline.<\/p>\n<p>Currently, USDT ranks as the third most valuable cryptocurrency with a market cap exceeding $111 billion. As the crypto sector witnesses increased adoption and price rebounds from recent dips, USDT is poised to solidify its standing within the crypto hierarchy.<\/p>\n<p>Conversely, USDe boasts a TVL exceeding $2.5 billion and boasts over 175,000 holders as per Ethena&#8217;s website data.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>An analyst forecasts a looming threat for traditional fiat-backed stablecoins such as USDT and USDC amidst the rise in popularity of Ethena&#8217;s USDe following its collaboration with Bybit, a platform for perpetual trading within the crypto realm. Ethena Joins Forces with ByBit Unlike other prominent stablecoins that are fiat-backed, USDe is a &#8220;synthetic dollar&#8221; supported [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":11275,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"slim_seo":{"title":"Is Ethena Posing a Threat to USDT and USDC with the Bybit Partnership? - Bitrabo","description":"An analyst forecasts a looming threat for traditional fiat-backed stablecoins such as USDT and USDC amidst the rise in popularity of Ethena's USDe following its"},"footnotes":""},"categories":[316],"tags":[2728,2553,2900,1652,1202,617],"class_list":["post-11274","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","tag-attack","tag-bybit","tag-ethena","tag-partners","tag-usdc","tag-usdt"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/11274","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/comments?post=11274"}],"version-history":[{"count":0,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/11274\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media\/11275"}],"wp:attachment":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media?parent=11274"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/categories?post=11274"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/tags?post=11274"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}