Su Zhu: The emergence of Ethena may lead to a deeper pullback for ETH and a quicker rebound

ChainCatcher message, Su Zhu stated on platform X that Ethena has created an interesting dynamic. Normally, if people choose to hold spot positions and short contracts for funding rate arbitrage, when the rate returns to neutral, they might start to cover their contracts and go long again. However, due to the presence of Ethena, some positions are now staked and have turned into USD (referring to some spot and futures shorts that have been collateralized to mint USDe in a combined form). This could mean that ETH may experience a deeper pullback and a quicker rebound.

Note: Ethena Labs is the development team behind the stablecoin USDe. The characteristic of USDe is that its collateral assets are composed of an equal amount of spot ETH and short positions in futures ETH.