Ethena Launches USDe On Solana Network as SOL Price Rises

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On Wednesday, Ethena (ENA) introduced USDe, a stablecoin valued at dollars, to the Solana network. This enables users to access and transact with USDe while utilizing other services within the SOL ecosystem. As a result of the news, SOL and ENA are down 1.3% and 6%, respectively.

The release from Ethena Labs, which was made public on X, emphasizes how USDe has been included in Solana’s DeFi ecosystem. In order to earn Ethena Sats, which can be converted for ENA tokens at the conclusion of each campaign, users may either supply liquidity to these platforms or utilize USDe as collateral for margin trades.

USDe launched on Solana network

Next week, a vote is anticipated to determine whether Solana (SOL) may be used as security for USDe loans. Owing to the limited historical data on SOL financing rates relative to Ethereum (ETH), Ethena Labs intends to gradually offer SOL short positions.

Supporters of the USDe point to its high and comparatively safe yield, while detractors doubt its long-term viability. Guy Young, the creator of Ethena Labs, has defended the currency, claiming that its yield comes from reliable sources and is “publicly verifiable.”

With the goal of expanding market access and increasing liquidity, Ethena has integrated USDe’s staked version, sUSDe, to enable users to collect rewards. Users can borrow PYUSD on Kamino Finance to leverage their holdings in USDe and sUSDe. Additionally, when trading perpetually, the Drift protocol will give users opportunities to generate yield utilizing USDe and sUSDe.

Furthermore, Ethena Labs has chosen to include SOL, the Solana network’s native token, as one of the underlying assets supporting the USDe stablecoin. Governance must accept the move, which Ethena said might improve USDe’s scalability by adding $2–3 billion in open interest across key exchanges.

Bulls continue to push SOL price up.

Shortly after the dip, Solana was able to turn things around, and now the bulls are attempting to drive the price back up to $170, demonstrating their tenacity. The bulls are regrouping and able to maintain the upswing thanks to the solid support level of around $127. A rally might be initiated if the price breaks above the moving averages, which could push the price up to the $188 barrier level.

Source: Coinmarketcap

However, if the bears take back the initiative, the price of Solana may drop below the neckline of the pattern. There is currently opposition from the moving averages at the neckline, indicating that the bulls may retake the upper hand.

Based on the daily time frame chart, the price of Solana expanded the down leg to $109 in a candle wick on Monday. The sell-off came after an initial decline from the top of $193 in July, which was also the time that Bitcoin was rejected at $70,000.

Unexpected liquidations exacerbated the technical structure in the futures market, boosting sellers and stifling bulls. But the swift bounce over $120 called on investors who purchased the drop, again boosting the SOL price.

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