Ethena (ENA)

Introduction to Ethena (ENA)

Volatility is one thing that has plagued the cryptocurrency landscape ever since it first formed with Bitcoin.

For investors, it’s just another means of speculation, one that can hurt just as much as it can reward.

There come times when there has to be some form of stability if cryptocurrency is to be a medium of exchange.

This is because if the value keeps on fluctuating, buying even the most basic things will be quite a hassle, as putting a definite price tag on things will be extremely difficult, and that’s not what people are looking for.

And that’s not what DeFi is supposed to be, i.e., simply a vehicle for speculation. Fortunately, the cryptocurrency landscape found a solution to this quite earlier on in the form of stablecoins like USDC, USDT, etc.

But in this article, there is one such solution that we’ll be turning our attention towards, and that is Ethena’s USDe, or rather, its entire network, really, and what it’s supposed to be.

So what is Ethena supposed to be? Simply put, Ethena aims to provide a synthetic dollar that functions throughout several DeFi applications without having to rely on any traditional financial infrastructure.

In other words, it wants to enter the stablecoin space and provide the DeFi space with more options when it comes to stablecoins and the utility that can be derived from them.

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The Genesis of Ethena

There’s not much to be found online about this protocol’s history. The only thing we could gather was that an entrepreneur named Guy Young founded it in 2023.

The desire behind founding Ethena was apparently to go beyond the limitations that conventional stablecoins faced.

Upon witnessing the challenges posed by centralization and yield inflation, Young made Ethena to facilitate a decentralized, reliable, and transparent financial ecosystem.

The whole vision behind Ethena was thus to reimagine what virtual currency can be capable of, though whether or not it’s able to enact that remains to be seen.

Regardless, it has been able to attract quite a lot of interest so far, receiving funding up to $14 million from the venture capital company Dragonfly Capital, and $6 million from the likes of Bybit, Binance Labs, Gemini, Mirana Ventures, OKX Ventures, and Deribit.

Understanding Ethena’s Technology

Diverging from conventional fiat stablecoins, USDe provides a cryptocurrency-native solution that aims to transform the present financial landscape by offering a decentralized and scalable type of money that can function independently of the traditional banking infrastructure.

Such innovation comes in the form of the “Internet Bond,” which is a financial instrument Ethena made to act as a dollar-denominated savings tool, available globally while being powered by Ethereum’s staking along with the market dynamics of derivatives.

Ethena’s mission has also been to furnish the cryptocurrency ecosystem with censorship-resistant, stable base money and a globally available savings instrument, which addresses a crucial gap within DeFi (decentralized finance) and the wider financial market

Ethena Labs’ initiative has emerged from what it deems to be the urgent requirement for cryptocurrency-native forms of stable assets that could support a truly decentralized financial system that’s not limited to traditional banking systems, which existing stablecoin models tied to those systems can be.

By employing delta-hedging techniques in managing the Ethereum collateral, it aspires to offer a scalable, censorship-resistant, and stable store of value and medium of exchange with its USDe token.

This method of producing a synthetic dollar doesn’t require any dependency on conventional stablecoin mechanisms or centralized financial infrastructures, which can lower systemic risks in both the DeFi and cryptocurrency spaces, providing a robust substitute to current stablecoin paradigms.

This “Internet Bond” concept that Ethena Labs introduced represents another step to globally democratizing access to saving instruments.

By amalgamating the yields from the derivatives market and staked ETH, Ethena seeks to offer a savings mechanism denominated in the dollar that could be a successful alternative to traditional savings instruments such as US Treasury bills.

Such an approach would not just bring a stable, yield-bearing asset for DeFi-based applications and centralized exchanges  but it’d also address the substantial market demand for an accessible type of investment and savings options in the cryptocurrency space.

This then brings us to our next point, which is that the “Internet Bond” possesses the potential to act as a fundamental financial instrument, both within decentralized and centralized financial systems, providing a democratized and permissionless substitute to what the traditional financial landscape has to offer.

ENA Tokenomics

Well, it turns out that the USDe is not the only token that Ethena has to offer, its other token ENA is there to serve as a typical cryptocurrency investment while also having some form of utility beyond that.

So with that out of the way, let’s move into a bit of the stats surrounding this token. Firstly, it’s currently trading at around $1.05. The market capitalization is more than $1.49 billion and the fully diluted valuation is over $15.7 billion.

The daily trading volume, on the other hand, is over $529 million. Moving on to the supply, there doesn’t seem to be a maximum supply on this token, but the total supply is exactly 15 billion, with the circulating supply being more than 1.42 billion.

Let’s now discuss a bit of the initial distribution of this token. So, 15% has been allocated to the foundation, 25% to investors, 30% to core contributors, and finally, 30% to ecosystem development.

The Utility of ENA Tokens

While USDe derives its utility from being a stablecoin, ENA does that from being centered around governance.

So, yes, it’s a governance token that allows the community behind this project a much-needed voice, where they have a say in how things are run, as with many other blockchain or cryptocurrency projects these days.

This is also to maintain the whole status quo of it being a force of decentralization and stability.

After all, you can’t be about decentralization at one point but then have a single or centralized entity or group running things. Nonetheless, the decisions that the community will get to vote on will be far from being inconsequential.

How to Acquire and Use ENA Tokens

So are you now interested in getting this token for yourself? Well, there’s quite a number of exchanges that support it, including the popular ones like Binance, KuCoin, Bybit, Bitget, and more.

As for how to buy them, well, that depends on the exchange you end up going for, as there could be a couple of extra steps that you could end up undertaking, like KYC, or spot trading if swapping isn’t possible, and such.

Regardless of what exchange you pick in the end, once you’ve registered for an account over there and connected your wallet, all you might ever have to do is just swap it for some other tokens that are already in your wallet. Or you can just use some fiat methods, assuming they’re provided, of course.

Ethena’s Role in DeFi and Blockchain Innovation

The utility that Ethena has to bring to the table is not one to be underestimated, as considering the likelihood of stablecoins losing their peg to the dollar or whatever currency they’ve been pegged to, there is a need for more stability, the assurance of that is, and if there is a stablecoin that could fill that void, then its role in DeFi as a medium of exchange for the many services that exist within the landscape is quite obvious.

Market Analysis and Adoption of ENA

As we stated earlier, the token is currently trading at around $1.05. But as for how that compares to its overall performance, while it’s still low from its all-time high of over $1.50, which it hit this month, i.e., April 2024, considering that it just launched this month, and was $0.55 at one point, it’s still quite impressive.

There’s no telling how much its price will gain in the future, but the chances of it falling seem to be less, at least for the time being. All in all, the future outlook doesn’t seem that bad for this token.

Future Roadmap and Strategic Direction of Ethena

As for what the future holds in terms of its roadmap, it seems that there is quite a lot planned, with even BTC involved.

To be more specific, there are plans of onboarding BTC as collateral, with the same being true for SOL.

Besides the collateral, there’s also the DAO governance rollout planned, and the beginning and conclusion of the second season of the incentive campaign.

Conclusion: The Potential Impact of Ethena (ENA)

The niche that Ethena has been operating in is far from fading away. The demand for stability, especially within a sector like cryptocurrency cannot be underestimated, as the whole ethos of DeFi cannot be realized if volatility plagues the landscape with no signs of stability in sight.

This is why Ethena released the USDe token when it did. Still its other yield bearing services could be worthwhile to look into, although do note that there are a few risks that you need to be aware of.

We Coin-Labs.com provides only objective information about Ethena (ENA).
Therefore, we are not responsible for the investment decision in Ethena (ENA) and the resulting loss.

Ethena (ENA) Basics

Here are some factors that investors should consider before investing in Ethena (ENA).

Cryptocurrency Features	Ethena (ENA) ()
Publisher or Developers
Headquarters (Registration Number)
Symbol
Platform
Published Date (CMC Registration)	2024-10-02
Max Supply	958,691,258,152,859

Reliability Score of Ethena (ENA) in 2024

These are indexes mesuring the investment reliability of Ethena (ENA) conducted by Coin-Labs.com.

Investment Reliability Rating Items	Scores and Current Status
Company Activation Rate	/ 10.0 CAR
Communication Rate	/ 10.0 CR
Technology Transparency Rate	/ 10.0 TTR
Development Participation Rate	/ 10.0 DPR
Listing Status on the World's Top 10 Exchanges	Listed on 0 Exchanges
Number of Available Pairs Worldwide	1 Pairs
Market Cap of the Cryptocurrency	6,683,329 USD (Rank #1295)

The table above shows the result of investment suitability evaluation for Ethena (ENA).
Check out how we evaluate cryptocurrencies on the crypto rating description page.

Ethena (ENA) Price

Here are the price and recent trading volume of Ethena (ENA). (Data of 2024-10-03 00:15:00)

Price Items	Price and Trading Volume of Ethena (ENA)
Ethena (ENA) Price	0.000 USD
Price Change 24h	-5.48%
Price Change 7d	-4.99%
Trading Volume 24h	11 USD
Trading Volume Change 24h	-82.47%

Cryptocurrency Metadata

You can check the development status and social media information of Ethena (ENA) through the links in the table below.

Metadata Source	URL
🌎 Official Website
📖 White Paper
🛰️ Source Code (GitHub)
🐦 Twitter
🤖 Reddit
🎺 Message Board

Where to Buy Ethena (ENA)

Here are the top ten world crypto exchanges where traders can buy Ethena (ENA) in 2024.

Top10 Exchanges	Listed Status	Page URL
Binance	Not listed
Coinbase	Not listed
Kraken	Not listed
KuCoin	Not listed
Bitfinex	Not listed
OKX	Not listed
Huobi	Not listed
Bitstamp	Not listed
Bybit	Not listed
Gate.io	Not listed

Frequently Asked Questions