Many people are eagerly discussing whether ENA can reach a high of 10u or 100u. However, purely predicting market trends is often futile because the market is always unpredictable.
When evaluating the value of ENA, we should avoid falling into the conventional project evaluation framework. Instead of considering ENA as an ordinary member among many projects, we should explore its unique characteristics in the complex cryptocurrency field.
In this cryptocurrency world filled with countless projects, 99% of them are likely to be short-lived. Therefore, our mission is to discover the unique advantages of ENA, which are the key factors that determine its true value.
Is the stablecoin business profitable?
Tether, the company that issued USDT, does not use advertising, does not engage in KOL rounds, and does not care about the community. It seems that it "does nothing" and has an annual income of 6.2 billion US dollars...
In the long run, in the cryptocurrency world, the first money-making business is exchanges, and the second money-making business may be stablecoins rather than public chains.
Binance is the strongest in the exchange business, and it is forming an increasingly larger network effect: listing coins one after another puts enormous pressure on other exchanges. If I were in an exchange, I would definitely be so angry that I would have backaches and stomachaches — — Its positive spiral in the bull market is really terrifying: leading investments in excellent projects, formulating issuance rules, and providing benefits to users. After the launch, the projects take off, users benefit, and Binance continues to grow.
This kind of positive network effect is quite terrifying, at least in the bull market and in the short term, it is incomparable to anything else.
As strong as Binance is, it lacks an important link in its grand plan — — stablecoin business.
In the past, Binance's busd was once extremely large in scale, but was later forced to cease operations due to pressure from the United States.
But Binance has always paid close attention to this business, because it is a commission-based business like that of exchanges, with huge and stable profits, and the scale effect is invincible, that is, the larger the scale, the greater the efficiency, and the more difficult it is to defeat.
So, after busd was taken off the shelves, a small project called lqty was suddenly listed on Binance. I was quite impressed because that project was actually quite ordinary. If it weren’t for Binance’s obsession with stablecoins, it would have been very difficult to be listed on Binance.
Now, FDUSD is supported and has a 0 fee rate, but for a stablecoin to form a network effect, it cannot do without widespread and comprehensive adoption, so FDUSD is not supported.
what to do?
Logically speaking, the stablecoin business should better attract more American forces to join in, so as to avoid bearing the compliance pressure after FTX alone; it should be different from all the current stable and centralized USDT and USDC, because the existing stable coins are too difficult to follow, countless ideas have failed, and there is no new thing at all — — and among all the innovations, only high returns are the most irresistible. Behind Binance’s pad/pool gameplay, they are well aware of this.
As for centralized services like USDT and USDC, no matter how strong Binance is, it is impossible for it to do so.
A few months ago, @CryptoHayes’s article about stable calculation in the context of perpetual contracts came out of nowhere. Perhaps, just like the perpetual contracts that are unique to the cryptocurrency world, the emergence of this high-yield stablecoin is somehow inevitable — — the inventor of the perpetual contract, after going through many ups and downs, continued the story of the funding rate, which is the innovative soul of the perpetual contract, with the second half.
No matter how strong USDT and USDC are, they are just tools, and Binance will not benefit much from them. However, as Binance's industry status improves, who will rely on whom in the end? With such a good business model, I am just your platform, which is really unscientific.
However, ENA and the USDE in the ENA project are different. It is natural for Binance to benefit from it as an investor. As USDE grows stronger in the future, it is reasonable for Binance to become the biggest beneficiary as the main usage scenario.
Therefore, USDE's high yield drives rapid expansion; decentralization is more widely adopted; high returns and funding rates become DeFi infrastructure.
Suggestions: Reduce the amount of holdings, do not do long-term contracts, and do not hold a large position! Know how to plan ahead and bury your wealth early.
It’s a bull market right now, and things are surging. We have the opportunity to share passwords every day.
I still say that, if you don’t know what to do in the bull market, click on my avatar and follow me, I will share the bull market spot planning and contract password for free.
I need fans, you need references. It's better to pay attention than to guess.
#比特币减半 #ENA $ENA
