The crypto oracle token RED experienced a significant 14% price increase following the expansion of its services for Ethena Labs’ stablecoins, USDe and sUSDe, onto the popular BNB Chain.
RedStone announced it has deployed price feeds for Ethena’s prominent stablecoins, USDe and sUSDe, on the BNB Chain network. This development broadens the reach of Ethena’s substantial stablecoin ecosystem, valued at over $5 billion, within the decentralized finance (DeFi) space.
This move builds upon an existing collaboration between RedStone and Ethena Labs initiated in March 2024. Notably, RedStone was the inaugural oracle service to provide data feeds for USDe and sUSDe. Early adopters like Venus Protocol and Pendle Finance integrated these feeds, enabling users to leverage the assets for borrowing, lending, and yield strategies using accurate, real-time pricing data.
The introduction of these price feeds on the BNB Chain significantly enhances the accessibility of Ethena’s stablecoins. Users benefit from BNB Chain’s characteristically swift transaction speeds and lower costs, coupled with a vibrant and expanding developer community. Demand for reliable price data for these assets on BNB Chain is surging, evidenced by USDe achieving an $8.5 million market capitalization on the network within just one week of availability.
This strategic expansion served as a catalyst for RED’s price, which jumped 14% to trade around $0.44. Accompanying the price rise was a dramatic 152% increase in 24-hour trading volume, exceeding $28 million. This rally provides a counterpoint to the generally bearish market sentiment that has affected the token since mid-March, when it reached a high near $0.95. Since then, critical support zones at $0.70, $0.60, and $0.50 were breached.
More recently, selling pressure intensified around April 25-26, pushing the price below the $0.40 local support level, as indicated by prominent red volume bars on trading charts. The token subsequently hit an all-time low of $0.32 just days ago before buyers initiated a recovery, pushing the price back above $0.40.
Analysis of the 4-hour chart suggests emerging bullish momentum, marked by a consistent series of green candles forming since the previous day. The price has also successfully reclaimed the 20-period Exponential Moving Average (EMA), often considered an early indicator of a potential positive trend reversal for the altcoin.