Ethena's USDe to Integrate With Bybit, ETFs Post Another Day of Net Inflows
Market Update
- Rates are broadly lower again on Tuesday, with the US 10Y nearing 4.4%, down from 4.7% just under a week ago. Risk assets are on the rise, with both the SPX and QQQ -0.07% showing gains today. Crypto performance is mixed so far, with BTC -0.06% retesting the $63k level after US market open, following a rally to just over $64k in the early morning hours. Meanwhile, ETH -1.04% is still hovering just above $3k, appearing relatively unloved compared to BTC -0.06% and SOL -2.59% , with the ETHBTC ratio now down approximately 5% over the past five days. Notable outperformers among the larger caps today include ENA -4.77% , following its integration of USDe on Bybit (more on that below), and RNDR 3.49% , the decentralized GPU rendering network, which is seemingly rallying alongside chipmaker NVDA. It was another positive day for ETF flows, with GBTC 2.72% experiencing inflows for the second consecutive trading day, and an overall net inflow of $217 million across all spot BTC ETFs.
Source: Farside Investors, Fundstrat
- Today, Ethena and Bybit announced a partnership that marks a strategic expansion for USDe, Ethena's stablecoin, into new applications within the crypto trading ecosystem. USDe operates as a tokenized basis trade where the stablecoin is backed by a long position in ETH or BTC and an equivalent short position in the perpetual futures market. This arrangement aims to harvest the spread between the two prices, passing the yield onto users. As part of this collaboration, USDe will be used as collateral for trading perpetual futures on Bybit's platform, potentially enhancing its liquidity and market presence. The partnership also introduces Bitcoin and Ether spot trading pairs with USDe, broadening the trading options available to users. Additionally, USDe will be featured on Bybit’s Earn platform, where users can utilize the stablecoin in launchpool farming activities to earn yield. This initiative could bolster USDe’s competitive position in the stablecoin market, and likely increases its systemic importance.
- Marathon Digital Holdings (MARA -0.66% ) saw its shares climb by 18% on Monday, boosting its market cap by approximately $800 million, following S&P Global's announcement that the bitcoin mining company would be added to the SmallCap 600 index. Concurrently, Marathon Digital outlined an executive bonus structure worth up to $32.9 million in an 8-K filing, aimed at aligning executive compensation with shareholder interests. This development occurs amid a broader period of relief for miners, which have experienced a rally since interest rates began to decline at the start of the month. MARA is featured in our recommended mining equities basket.
Daily Technical Strategy
Mark L. Newton, CMT
Head of Technical Strategy
RocketPool looks to be readying for a coming breakout of its two-month downtrend, following the recent success in having held April lows and its recent success in pushing back over $20 over the past week. While the larger downtrend for RPL -2.11% remains intact from March peaks, the recent surge off the 5/1 lows managed to exceed the minor two-week downtrend from mid-April. The subsequent consolidation this week has proven minor and has failed to give back the rally from late last week. This is encouraging and seems to be suggesting an upcoming breakout of the larger downtrend could be imminent. Overall, a daily close back over $22 should represent a breakout of the downtrend which should result in a strong push higher to $27 with a further rally up to $30-33 likely. Initial resistance might materialize near $25, but should prove temporary ahead of a further rally to test the resistance targets mentioned above.
Daily Important Metrics
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All metrics as of May 7, 2024 12:27 PM
All Funding rates are in bps
Crypto Prices
| Symbol | Market Cap | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
 BTC | $1.26T | $63,789 | ↑ 0.30% | ↑ 51% | |
 ETH | $369B | $3,075 | ↓ -0.50% | ↑ 35% | ↓ -16% |
 SOL | $69B | $155 | ↑ 0.33% | ↑ 52% | ↑ 1.13% |
 ADA | $16B | $0.4529 | ↓ -1.35% | ↓ -24% | ↓ -75% |
 DOT | $10B | $7.19 | ↑ 0.22% | ↓ -11% | ↓ -62% |
 LINK | $8.5B | $14.53 | ↓ -1.04% | ↓ -2.95% | ↓ -54% |
 NEAR | $8.0B | $7.50 | ↑ 1.90% | ↑ 108% | ↑ 57% |
 MATIC | $7.0B | $0.7096 | ↓ -2.54% | ↓ -26% | ↓ -77% |
 DOGE | $595,492 | $0.0006 | ↓ -12% | ↓ -99% | ↓ -150% |
Exchange Traded Products (ETPs)
| Symbol | Premium to Nav | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
| BITW | ↓ -32% | $30.11 | ↑ 0.70% | ↑ 29% | ↓ -22% |
| ETHE | ↓ -24% | $22.44 | ↑ 0.65% | ↑ 16% | ↓ -35% |
News
QUICK BITS
The Block Hong Kong-based Monolith Management has a larger position in BlackRock's spot bitcoin ETF than in established tech giant Meta. |
The Block MoonPay partners with BitPay to streamline crypto transactions The partnerships makes selling crypto easier, in addition to streamlining how users send crypto to their bank account or debit card. |
CoinDesk Revolut's Crypto Exchange Goes Live for Experienced Traders London-based Revolut, which has more than 40 million customers worldwide, has developed Revolut X to compete with leading crypto exchanges. |
The Block Bybit is integrating Ethena Labs' synthetic dollar, USDe, as a collateral asset and in spot trading pairs for bitcoin and ether. |
REGULATION
CoinDesk Robinhood Would Likely Win Crypto Court Case With the SEC: KBW The platform being issued a Wells Notice by the SEC is surprising given the company’s conservative approach to digital assets listings, the report said. |
The Block South Korea’s winning party moves toward bitcoin ETF promise: report South Korea’s opposition Democratic Party plans to make spot crypto ETFs locally accessible, while regulators currently ban such products. |
The Block Over 20% of voters in swing states consider crypto a key issue in US elections: survey More than 20% of voters in battleground states consider crypto to be a key issue in U.S. elections, according to a poll released by DCG. |
FUNDRAISING AND M&A
The Block Lava Foundation raises $11 million in token round ahead of airdrop Lava Foundation, a newly formed non-profit for the development of the modular blockchain network Lava, has raised $11M in a token round. |
CoinDesk Galaxis Raises $10M, Doubling Down on Belief That NFTs Will Provide Real Value Everywhere As it gears up for its token launch, Galaxis, a Singapore-based Web3 platform, has raised $10 million with participation from Chainlink, Ethereum Name Services ... |
The Block Botanix Labs raises $8.5 million to build a Bitcoin-native DeFi ecosystem Following a previously unannounced $3 million pre-seed round last year, the raise brings Botanix Labs’ funding to $11.5 million. |
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