ENA Overview: The Ethena Project and the Role of its Token

Ethena is a synthetic dollar platform that combines CeFi, DeFi, and TradFi, with its core products including the stablecoin USDe and the yield-bearing asset sUSDe. Its platform token ENA has governance functions and is expected to gain value capture capabilities as the ecosystem expands. Since its launch at the end of 2024, ENA has garnered widespread attention from investment institutions and DeFi projects.

Current Price and Market Performance

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

As of early July 2025, the current price of ENA is approximately $0.35, having dropped more than 70% from its historical high. This wave of decline is largely in sync with the overall adjustment rhythm of the crypto market, as Bitcoin (BTC) and Ethereum (ETH) have also retraced 25% and 50% from their highs, respectively. ENA’s weak performance more reflects unlocking pressure and short-term liquidity fluctuations.

The three core logics supporting the long-term value of ENA

1. Innovative Delta Neutral Hedging Model: Ethena’s original automated Delta neutral hedging strategy uses futures short to hedge against price fluctuations of stablecoin collateral assets, significantly enhancing capital efficiency.
2. CeFi + DeFi + TradFi integration capability: USDe has practical applications in CEX, DeFi, and iUSDe in TradFi, making it the only stablecoin that realizes connectivity across the three realms.
3. Stablecoin ecological status is solid: Currently, USDe has become the third largest dollar stablecoin, only after USDT and USDC, with a total issuance of over 5.5 billion dollars, making it the preferred collateral in many protocols.

Analysis of the Reasons for Cryptocurrency Price Correction

Despite the solid fundamentals of Ethena, the recent price decline of ENA is mainly influenced by the following factors:

• Investment institutions unlocking expectations: Starting from May 2025, approximately 78 million ENA investment institution shares will begin to unlock linearly each month, creating increased supply pressure in the market.
• Bybit risk event transmission: Bybit is too deeply bound to USDe, and the security incident in June triggered market panic redemptions, intensifying short-term liquidity pressure.
• Delta hedging strategy is short-term limited: In a bear market, the futures funding rate is negative, and the return on sUSDe is declining, raising concerns in the market about the sustainability of its core mechanism.

The token unlocking and supply risks of ENA

According to the official plan, the total supply of ENA is 1.5 billion pieces, most of which are still locked. The current circulating market value is about 2 billion dollars, but due to the clear unlocking plan, the market has certain expectations. The recent downward trend may have already accounted for the selling pressure from the unlocking, and if the project’s fundamentals improve in the medium to long term, it is expected to welcome a valuation recovery.

Summary: The focus of medium to long-term investors.

For medium to long-term investors, determining whether ENA is worth holding requires a comprehensive consideration of the following factors:

• Is the USDe ecosystem continuing to expand?
• Can the Delta hedging mechanism operate stably?
• Can TradFi cooperation continue to drive the financing demand for iUSDe?
• Is the unlocking pressure of ENA fully priced in by the market?

In the current context of a weak market, ENA may face short-term pressure, but with its unique model and strong institutional backing, it still has certain rebound and growth potential in the future.