Research Summary
The report discusses the recent trend of celebrities launching their own cryptocurrencies, with a focus on Caitlyn Jenner’s coin on Solana. It also highlights the growth of Ethena’s stablecoin, USDe, and its increasing market cap.
Key Takeaways
Celebrity Cryptocurrencies
- Controversy Surrounding Celebrity Coins: The report discusses the polarizing views on celebrities launching their own coins. Some believe it will onboard users to crypto, while others argue it will lead to extractive outflows from the ecosystem.
- Caitlyn Jenner’s Coin: Caitlyn Jenner launched a coin on Solana, which initially reached $40m in the first 24 hours before dropping 90% off the high. She later launched another coin on ETH.
- Other Celebrity Coins: Other celebrities, including Trippie Red, Lil Pump, and Soulja Boy, also launched coins, some of which were short-lived and involved questionable practices such as promoting and selling simultaneously.
Ethena’s Stablecoin
- USDe’s Growth: The report highlights the significant growth of Ethena’s stablecoin, USDe, which has seen a relentless increase in supply since the beginning of the year. It recently became the 4th largest stablecoin by market cap, approaching 3 billion in supply.
- Reasons for USDe’s Success: The report attributes USDe’s success to its consistently attractive yield and Ethena’s partnerships and business development efforts, which have increased the utility of USDe across different chains and platforms.
Actionable Insights
- Monitor the Impact of Celebrity Coins: Given the controversy and potential risks associated with celebrity coins, it’s important to closely monitor their impact on the broader crypto ecosystem.
- Assess the Longevity of Celebrity Coins: The report suggests that many celebrity coins may be short-lived. It would be beneficial to assess their longevity and potential for sustained success.
- Track the Growth of USDe: Given the rapid growth and increasing market cap of USDe, it would be worthwhile to track its progress and assess its potential impact on the stablecoin market.
- Understand the Factors Driving USDe’s Success: Understanding the factors contributing to USDe’s success, such as its attractive yield and strategic partnerships, could provide valuable insights for other stablecoin projects.
