Quick Takeaways
- Ethena exits stablecoin competition after community concerns.
- Native Markets now holds a strong 92% chance of winning, says Polymarket.
- Some doubts still linger around Native Markets’ credibility.
Ethena Exits Stablecoin Bid Now All Eyes on Native Markets
In a surprising but respectful move, Ethena has officially bowed out of the race to launch Hyperliquid’s native stablecoin (USDH).
The team behind the popular USDe synthetic dollar shared the news on X, saying the decision came after honest conversations with community members and validators.
While Ethena has a strong track record in DeFi, many in the Hyperliquid ecosystem were hesitant to back them mainly because they weren’t a Hyperliquid native project. So instead of pushing forward, Ethena chose to step aside.
“It’s a level playing field where new teams can win the community’s trust and actually get a shot,” said Ethena Labs founder Guy Young, showing support for the team now leading the race: Native Markets.
It’s a rare moment in crypto a big name voluntarily stepping back and giving props to a smaller, community-native team.
With Ethena Out, Stablecoin Odds Favor Native Markets
Since Ethena’s withdrawal, the momentum has shifted quickly and Native Markets is now the clear favorite to issue Hyperliquid’s USDH stablecoin.
According to prediction markets on Polymarket, Native Markets has a 92% chance of winning the vote. Meanwhile, more established player Paxos is sitting at just 7%.
This moment highlights something bigger: in crypto, being “the most known” doesn’t always mean you’re the most wanted especially when it comes to building within a tight-knit ecosystem like Hyperliquid.
Still, Some Questions Remain Around Stablecoin Favorite
While Native Markets is gaining a lot of traction, not everyone is fully sold yet. Some in the community have raised concerns about the project’s credibility mainly due to its lower profile and lack of past public milestones.
But on the flip side, supporters argue that this is exactly what makes Hyperliquid so special it gives smaller, homegrown teams a real chance. And Native Markets, being truly native to the platform, fits that mold.
So yes, there are some open questions. But at the same time, this could be the start of something new where trust is earned in real time, not just based on past reputation.
What It All Means for the Future of Stablecoin Projects
What’s happening here is bigger than just one competition. Ethena stepping down, and Native Markets rising, shows that the stablecoin world is starting to value something different: ecosystem alignment, community trust, and decentralization over clout or credentials.
If Native Markets wins and delivers, it might set a powerful new standard for stablecoin development. More teams may choose to build from the ground up inside ecosystems like Hyperliquid, rather than just showing up with a flashy pitch. And for users? It means more decisions being made by communities, not just companies.
