Original Title: Ethena's Bullish Pump

Author: Jack Inabinet, Bankless

Translation: Frost, BlockBeats

Editor's Note: In the current market situation where many altcoins are trending downward, ENA of Ethena has managed to rise against the trend, and crypto researcher Jack Inabinet discusses the reasons for its rise and his own views on whether the rise is sustainable and the sources of the project's revenue. The original article is translated as follows by BlockBeats:

In the recent market, many altcoins have been trending downward, but ENA of Ethena has successfully risen against the trend, with a nearly 10% increase at the beginning of this week. What has caused ENA to perform well? Is its upward trend sustainable?

The ENA/BTC trading pair established its local bottom last week, and Ethena's growth director announced on Twitter that important information would be released in the coming days.

After community members preemptively announced this news, the ENA/BTC trading pair saw a good increase on Monday this week. Subsequently, Ethena Labs officially announced on Twitter on Tuesday this week that USDe will be integrated into the Bybit exchange, which is the fourth largest futures trading volume exchange in April. In the afternoon of the same day, ENA soared to $1, reaching a new high since May.

This collaboration will support spot USDe trading pairs and allow Bybit users to use USDe as collateral for perpetual trading, enabling them to achieve higher capital efficiency by offsetting most of the capital payment. In addition, users will be able to increase their earnings by providing USDe to Bybit for yield farming.

If Bybit receives positive feedback after supporting USDe trading pairs, other exchanges may also quickly support USDe trading pairs, ultimately competing with stablecoins such as USDT and USDC.

In order for Ethena to succeed, the demand for long leverage must remain at a high level to maintain a high funding rate, as this is the main source of revenue for the project. Furthermore, a decrease in the funding rate will reduce the holders' earnings, and when the interest rate becomes negative, Ethena will suffer losses.

Although the high rate driven by the bull market supported the adoption of USDe in early 2024, the token's supply has been declining since April 13 when the cryptocurrency market entered a downtrend.

The continuous decrease in the rate indicates that the market's frenzy has temporarily come to an end. Although the integration of USDe into exchanges can help increase demand for the token, it will be difficult to save the product if the returns further decline.

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