Can ENA Still Rise? Exploring Token Potential Through the Stablecoin Revolution

What is Ethena? A new path for stablecoins

Ethena is an emerging stablecoin issuance protocol that differs from traditional fiat-pegged methods. It employs a Delta neutral hedging strategy, collateralizing assets such as BTC and ETH, and shorting an equivalent nominal value on CEX platforms to achieve price anchoring. This mechanism ensures that its core asset USDe does not rely on centralized custody and does not require over-collateralization, resulting in higher capital efficiency.

Ethena has launched both sUSDe (an interest-bearing version of USDe) and iUSDe (an institutional stable income asset), creating a complete crypto “dollar reserve” toolchain.

The Role and Economic Model of ENA

ENA is the platform Token of Ethena, with the following categories of functions:

• Governance: Deciding on key mechanisms such as protocol parameters, fund allocation, etc.
• Value Addition: In the future, it may enhance intrinsic value through a protocol fee buyback and burn mechanism.
• Incentives: Users can earn protocol rewards by staking ENA or participating in liquidity mining.

According to official disclosures, the total supply of ENA is 1.5 billion tokens, with approximately 3 billion tokens currently in circulation. The team and investment institutions hold a portion that is gradually being unlocked, which is a potential source of selling pressure that the market is paying attention to.

Current Market: What Challenges Does ENA Face?

Figure:https://www.gate.com/futures/USDT/ENA_USDT

Since its launch at the end of 2024, ENA has risen to over $1.5, but by July 2025, the coin price has dropped to around $0.35, a decline of more than 70%. The main reasons include:

• Market adjustment: Mainstream coins such as Bitcoin and Ethereum are in a correction phase, with overall liquidity decreasing;
• Project unlock expectations are strong: Institutional investor shares have been gradually unlocked since May, causing supply pressure;
• Yield logic fluctuations: As the funding rate declines, sUSDe yields decrease, weakening some users’ willingness to use it.

But this does not mean that ENA has no prospects; on the contrary, the true value logic is gradually emerging.

Three main driving factors for the future rise of ENA

1. The stablecoin ecosystem continues to expand: USDe has become the third largest stablecoin in the market, following USDT and USDC, with a market capitalization exceeding 5.5 billion dollars, and is being adopted as collateral by multiple protocols (such as Pendle, Aave, Morpho). The more widespread USDe is, the more strategic the position of ENA.
2. The institutional path is clear.
   iUSDe is now open to funds and TradFi investors, and Ethena aims to allow traditional financial clients to participate in on-chain USD interest yields. This integration path will bring real capital inflows, indirectly supporting the medium to long-term demand for ENA.
3. The stable bridge between DeFi and CeFi
   Ethena is designed to balance DeFi protocols and liquidity from centralized exchanges, with many funding rates driven by CEX platforms. As the market stabilizes and recovers, sUSDe yields are rising, liquidity is returning, and ENA is expected to see a revaluation opportunity.

How does the market view the long-term value of ENA?

In the eyes of long-term investors, ENA is more like an equity certificate for participating in the “on-chain dollar bank.” It represents the future cash flow and governance rights of the protocol.

The participation of top institutions such as Paradigm, Dragonfly, and Franklin Templeton has also strengthened the market’s confidence in its fundamentals. If Ethena becomes one of the mainstream stablecoin issuers on the chain, the “strategic value” of ENA may far exceed its current price performance.

Investment advice: Observation window during the pullback period

For ordinary investors, the current stage is not a good time to chase after ENA, but as a layout window after the pullback, its potential advantages include:

• The pullback is sufficient, and the technical indicators meet the conditions for a rebound;
• The project has not seen any turmoil in the core team, and the mechanism operates stably.
• The use cases for stablecoins are expanding, and demand continues to increase.

It should be noted that ENA is a highly volatile asset, suitable for phased accumulation and risk control operations. Short-term unlocking pressure may still bring shocks, but the growth logic in the medium to long term remains clear.