Enthusiasm about the SEC doubtlessly approving a pronounce ether alternate-traded fund (ETF) has propelled the market cap of Ethena’s synthetic buck cryptocurrency USDe above $2.5 billion, following a surge in Ethereum open hobby amongst exchanges and elevated perpetual funding charges across the market.

The market cap of USDe hovered around $2.45 billion on Could perhaps perhaps perhaps 20, earlier than Bloomberg ETF analysts Eric Balchunas and Jeff Seyffart elevated their odds of the United States Securities and Trade Commission approving a pronounce ether ETF to 75%. Since then, USDe’s market cap has grown by $100 million in buck terms, a 4% amplify in the previous three days, to $2.55 billion at presstime, records from CoinGecko reveals.

The soar in USDe’s market cap partly stems from Ethena’s USDe staking yield turning into extra elegant. Per Ethena’s homepage, USDe’s staking yield currently stands at 37.2%, a pointy rise from 27.55% on Could perhaps perhaps perhaps 14.

Ethena’s staking yield comes from the rewards from staking ETH and the funding rate earned by Ethena for opening brief spinoff positions. Merchants who receive long previous long in futures derivatives markets on exchanges pay funding costs to these maintaining brief positions worship Ethena.

Read Extra: As Ethena’s USDe Rapidly Reaches $2 Billion in Market Cap, Some Wonder If It’s as Unhealthy as Terra’s UST

Which skill that, Ethena’s USDe staking yield earned by depositors will enhance when open hobby and perpetual funding charges amplify. When Bloomberg analysts elevated odds of a pronounce ETH ETF approval, Ethereum open hobby and perpetual funding charges grew.

“The amplify in both open hobby and funding is and would possibly perhaps well well continue to be a trim tailwind for Ethena – common perpetual funding charges across the market moved from <7% [on May 20] to over 35% in no longer as much as eight hours,” wrote Ethena Labs founder Guy Young to Unchained over Telegram.

Ethereum open hobby on exchanges stood at 2.8 million on Could perhaps perhaps perhaps 20 and has since risen 10% to three.1 million ETH, about $11.58 billion, an all-time file high in open hobby, records from CryptoQuant reveals. Begin hobby refers back to the total different of long and brief positions currently held by merchants on spinoff exchanges.

Read Extra: Ethena Partners With Bybit. Will It Catalyze USDe’s Progress?

“Merchants in the perpetual futures market aggressively opened long positions in Ethereum, observing for elevated costs after rumors that the pronounce Ethereum ETF in the US would possibly perhaps well well additionally very smartly be authorized in Could perhaps perhaps perhaps,” wrote analysts from blockchain analytics company CryptoQuant in a epic printed Wednesday.

Ethena’s native governance token ENA has dropped 5% in the previous 24 hours nonetheless elevated 13% in the previous seven days to change at 83 cents, per CoinGecko.