YZi Labs, formerly Binance Labs, has confirmed increasing its position in Ethena, the platform behind the synthetic dollar stablecoin USDe.
Such a move indicates confident and renewed dedication to fueling USDe’s prosperity story.
The YZi team aims to increase the stablecoin’s utility across decentralized finance (DeFi) and centralized exchanges (CEXs).
Their official press release highlights:
This continued support will help Ethena further drive USDe adoption across both CEXs and DeFi, expand stablecoin utilities, advance USDtb – a fiat-backed stablecoin pursuing GENIUS compliance – and launch Converge, a settlement layer developed with Securitize and BlackRock’s tokenization partners to bring TradFi-grade RWAs on-chain.
We’re excited to deepen our partnership with @yzilabs
YZi Labs will support our continued growth as we expand USDe adoption across centralized and decentralized platforms, scale on BNB Chain, and develop new products
YZi Labs’ decision comes as Ethena blockchain thrives, with total value locked soaring from $5.7 billion in July to $14.153 billion at press time.
Notably, the impact investment firm was one of the earliest Ethena believers, supporting the protocol since its Sn 6 Incubation Program last year, before the network’s public launch of USDe.
Then, Ethena was experimenting with its crypto-centric synthetic dollar model, which leverages delta-neutral hedging to ensure stability as holders enjoy a sustainable yield without banks.
YZi’s early bet paid off well. Ethena has grown into a $14 billion project in over a year since launching the USDe stablecoin.
USDe has also continued to thrive. Its market cap $13.94 billion (DeFiLlama) ranks as the 3rd-largest dollar-backed asset in the crypto market, behind USDC and USDT.
USDe has become a solution for individuals seeking reliable, yield-bearing digital currencies.
Ethena Labs CEO and founder Guy Young believes USDe is a solution for users looking to make money from their idle assets, saying:
The holy grail of digital dollar distribution has always been embedding stable, yield-bearing assets directly into the core of the crypto economy.
With USDe now scaling across exchanges, DeFi protocols, and global user bases, that vision is becoming a reality.
BNB chain expansion and new products
YZi’s renewed support comes as Ethena continues to build.
The Ethereum-based protocol expanded onto BNB Chain in early April.
Moreover, Ethena plans to launch a GENIUS-compliant fiat-pegged stablecoin (USDtb) and Converge, a settlement layer to support institutional transactions.
These products will enrich Ethena’s ecosystem by unlocking RWA settlement to connect DeFi and TradFi.
ENA price outlook
Ethena’s native token underperformed today, losing nearly 5% the previous 24 hours to $0.6666.
ENA’s bearish outlook mirrors broader sentiments.
The global cryptocurrency market cap plunged 2% in the last 24 hours to $4.04 trillion.
The downside follows short-lived gains that emerged after the Fed executed a 25 bp cut.
Nonetheless, experts say this could be the final dip before a decisive altseason.
Analyst Crypto Smith believes Ethena boasts what it takes to pull a 5x growth in the coming months.
He expects ENA to soar to the weekly target at $7, which would mean an over 950% increase from the prevailing market cap.
Furthermore, BitMEX co-founder Arthur Hayes predicts a 51x growth for Ethena by 2028.
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