Is Ethena the Next Big Thing? Guy Young Explores the 30x Potential of Equity Perpetuals

Equity perps Ethena Ethena [ENA]

Guy Young, the founder of Ethena, believes that equity perpetuals could unlock a market opportunity that is more than 30 times larger than the current cryptocurrency market. With the rise of decentralized exchanges (DEXs) like Hyperliquid and delta-neutral strategies employed by platforms like Ethena, the landscape of trading is evolving. As crypto speculation intensifies, the introduction of equity-based perpetuals could provide substantial growth opportunities.

Key Takeaways

Ethena founder Guy Young estimates equity perpetuals could tap into a market over 30 times bigger than the existing crypto market.
Platforms like Hyperliquid and Ethena that utilize delta-neutral strategies stand to benefit significantly from this new trend.
The cryptocurrency market currently sits at about $4 trillion, while global equities are valued at around $120 trillion.
According to Young, equity perpetuals might have higher potential than Robinhood's market cap of $129 billion.
Ethena’s USDe has reached a notable status as a leading stablecoin, showing the viability of synthetic assets in the crypto ecosystem.

Are Equity Perpetuals the Next Big Opportunity?

Guy Young has highlighted the remarkable potential of equity perpetuals, suggesting that Ethena may be poised to take advantage of this market evolution as it matures. This sentiment is reinforced by Jose Macedo, co-founder of Delphi Research, who stated that equity perpetuals could significantly expand Ethena's total addressable market from the $3 trillion crypto sector to the $120 trillion global equity market, a shift that has yet to be fully recognized.

Currently, Robinhood holds a market capitalization of $129 billion. However, Young predicts that the innovation surrounding equity perpetuals could yield companies valued much higher than this figure. A testament to this trend is Ethena’s USDe, which has become the third-largest stablecoin by market cap, valued at $10 billion, thanks to its traditional crypto perpetual strategies. This involves purchasing assets in the spot market and opening corresponding short positions in futures to benefit from the price discrepancies.

Equity perps Ethena Source: X

The Boom of Perpetual DEXes

While the current cryptocurrency market is valued at $4 trillion, the prospect of extending into a $120 trillion market using similar delta-neutral strategies could be a significant focus for Young, especially with expected improvements in regulatory clarity and liquidity.

In October alone, the overall cryptocurrency perpetuals sector saw dramatic growth, with decentralized exchanges (DEXs) recording $1.2 trillion in volume. This figure is nearly double the $739 billion reported in September, highlighting the growing interest in speculative trading.

equity perps Source: DeFiLlama

As Ethena looks to capitalize on the broader growth of perpetuals in the crypto space, it remains to be seen how this will impact the value of ENA and the overall market landscape.