Ethena founder claims USDe growth drives increased creation of Tether’s USDT

Guy Young states that USDe’s growth leads to heightened demand for USDT, as each new USDe unit necessitates an equivalent USDT. Tether’s CEO, Paolo Ardoino, supports this synergy, indicating that both stablecoins can serve distinct market needs.

With USDT’s supply reaching a record high of 146 billion USD, it remains the leading stablecoin despite challenges from others like USDC. Young argues that stablecoins must choose between liquidity or yield, predicting that attempts to balance both will ultimately falter.