Ethereum (ETH) is outperforming Bitcoin (BTC) as regulatory developments put yield-generating stablecoins under pressure, according to Markus Thielen, founder of 10x Research.
🔹 ETH/BTC Ratio Soars: The ETH/BTC pair jumped nearly 6% to 0.02670 on Tuesday — its strongest performance since mid-May. Meanwhile, ETH/USD climbed over 4%, pushing past $3,100 for the first time since February.
🔹 Regulatory Spotlight: The rally is being driven by growing expectations that the U.S. GENIUS Act — a proposed stablecoin bill — could restrict U.S.-based issuers from offering yield on stablecoins. This may enhance Ethereum’s role in the digital asset space, as many yield-generating protocols are built on its network.
🔹 Ethena in Focus: The bill has brought attention to Ethena’s USDe, a $5B synthetic dollar that generates yield via delta-hedging — shorting ETH futures to mirror interest-like returns. This mechanism, while effective, adds downward pressure to ETH in futures markets.
🔹 Regulatory Uncertainty: Ethena, based in Lisbon, has reached out to the SEC, arguing that USDe functions as a payment tool rather than a security. Since it’s not available in the U.S., Ethena isn’t directly at risk from GENIUS or STABLE Act regulations.
🔹 Market Reaction: Despite potential regulatory hurdles, Ethena’s growth continues. It has generated nearly $300M in total revenue over the past year, with $15M in just the last month. Its token, ENA, is rallying alongside rising Ethereum funding rates — a bullish sign that’s also boosting sentiment around Ethereum ETFs.
📅 The GENIUS Act, which cleared the U.S. Senate in June, is expected to reach the House floor for a vote by Thursday.
Graphical summary of the key metrics driving Ethereum’s recent outperformance:
• ETH/BTC Ratio increased by nearly 6%
• ETH/USD price rose over 4%
• Ethena’s USDe market size: $5B
• Ethena’s 12-month revenue: $300
• Ethena’s 1-month revenue: $15M
Ethereum Shines Brighter: Outpacing Bitcoin Amid Regulatory Shifts in the U.S. Crypto Landscape.