Su Zhu: The emergence of Ethena may make ETH retrace deeper and rebound faster
Su Zhu stated on X platform that Ethena has created an interesting dynamic. Normally, if people choose to hold spot positions and short contracts to arbitrage funding rates, when the rates return to neutral, they may start covering contracts and going long again. However, due to Ethena's existence, some positions have now been pledged and converted into USDe (referring to some spot and futures short positions that have been collateralized and minted into USDe through a combination). This may mean that ETH will experience deeper retracements and faster rebounds.
Odaily Note: Ethena Labs is the development team behind the stablecoin USDe, which is characterized by its collateral assets being made up of equal amounts of spot ETH and futures ETH short positions.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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