CRYPTOQUANT: ETHENA Reserve Fund can cope with negative interest rates, provided that the market value of USDE does not exceed 3 billion US dollars.

JULIO MORENO, the research director of CRYPTOQUANT, stated that the current reserve fund of ETHENA ($32.7 million) is sufficient to handle a period of negative interest rates, as long as the market value of USDE does not exceed $3 billion (current market value is $2.4 billion). In order to safely handle special events where significant negative interest rates occur with market values of $4 billion, $5 billion, $8 billion, and $10 billion, the reserve fund would need to be increased to approximately $40 million, $50 million, $80 million, and $100 million respectively.