Ethereum Crushes Solana, XRP, and Dogecoin with Stunning 66% Q3 Rally - This Hidden Gem Could 66x in Q4
Ethereum just schooled the altcoin competition.
The smart contract pioneer surged 66% last quarter while rivals stumbled - leaving Solana, XRP, and Dogecoin eating digital dust.
Q4's sleeping giant
While Ethereum dominates headlines, one under-the-radar token positions for explosive growth. Market patterns suggest 66x upside potential in the coming months.
Timing beats everything in crypto - except maybe avoiding the 'stablecoins' that aren't actually stable. The real money moves when fundamentals meet momentum.
USDe collapses as traders flee risky assets
With a market cap of $14 billion, USDe ranks as the third-biggest digital dollar in circulation. Binance, the largest exchange on the planet, confirmed in a blog post that “our team is currently conducting a thorough review of the impacted users, the details surrounding these liquidations, and the appropriate compensation measures,” specifically mentioning USDe and two other depegged tokens.
Ethena Labs, the company behind USDe, said on X that the token is still over-collateralized, but that didn’t calm the markets.
The model Ethena uses is built on a version of the basis trade, where the system tries to profit off differences between spot and futures prices. It works well when the market is moving up and funding rates, the fee paid by Leveraged traders, are high. But when the bottom drops out like it did this week, that strategy turns to dead weight.
The funding rate for Ether had collapsed to the lowest level seen since the yen-carry trade unwind back in August last year, which crushed the returns that backstop USDe’s 5.5% yield. It didn’t stop there. ENA, the governance token that runs Ethena’s protocol, tanked as much as 43% in 24 hours, based on data pulled from CoinGecko.
Meanwhile, CoinGecko and CoinMarketCap still list USDe as a stablecoin, even after the peg broke, as is typical. Unlike USDT and USDC, which are backed by Treasury bills, USDe is tied to crypto strategies, strategies that can crumble during panic events like this one.
Sharpen your strategy with mentorship + daily ideas - 30 days free access to our trading program
