Ethena (ENA) Dips to $0.45 Amid Market Corrections, Analysts See Undervaluation

Ethena (ENA) experienced a pullback to approximately $0.45, retreating from a recent local high of $0.50–$0.55 following broader market corrections. Despite this short-term decline, analyst Kapoor Kshitiz has maintained a bullish outlook, arguing that the project remains significantly undervalued. The token’s 35% weekly gain earlier in the week had signaled momentum, but its current price reflects a temporary retracement rather than a breakdown of the broader uptrend [1].

Kapoor’s analysis highlights Ethena’s unique value proposition, particularly its native stablecoin USDe. With a supply exceeding $6.5 billion, USDe has demonstrated rapid adoption across multiple ecosystems, including outpacing USDC on Bybit and deploying $87 million on the TON blockchain within six weeks. These figures underscore the protocol’s scalability and appeal in decentralized finance (DeFi) environments [1]. The analyst also emphasized Ethena’s regulatory edge, noting its engagement with the SEC’s Crypto Task Force—a rare advantage in an industry grappling with compliance uncertainties. This proactive approach, coupled with the anticipation of rate cuts, could position Ethena as a preferred stablecoin solution when bond yields decline and perpetual funding mechanisms gain traction [1].

The Ethena ecosystem has also seen infrastructure developments, including the Ethereal DEX, which achieved $720 million in TVL pre-launch. sENA stakers benefit from 15% of the token supply, while Terminal Finance’s new DEX + RWA hub reported over $125 million in TVL. These projects reinforce the platform’s shift from speculative hype to tangible, revenue-generating infrastructure [1]. Additionally, Ethena’s revenue model—a 10 bps mint fee on USDe and revenue sharing with sENA holders—creates a sustainable framework for token value accrual, a rarity in traditional DeFi models [1].

Despite the price dip, key catalysts remain in play. A $360 million ENA buyback by StablecoinX and ongoing treasury growth could fuel further upside. Analysts also note the influence of Arthur Hayes, a prominent figure in crypto, who has publicly endorsed Ethena, adding to its credibility. These factors suggest the recent correction may serve as a consolidation phase rather than a bearish signal [1].

Price forecasts vary, with some scenarios projecting ENA could test $0.50–$0.55 again if support holds above $0.42–$0.44. Longer-term predictions, while speculative, cite potential for $0.80 by mid-2025 or even $7 by 2030, contingent on USDe adoption and favorable market conditions. However, risks persist, including regulatory scrutiny and the complexity of Ethena’s delta-neutral strategies, which rely on derivatives to maintain USDe’s dollar parity [1].

The project’s trajectory hinges on balancing innovation with risk management. Whale activity, including the accumulation of over 200 million ENA tokens, signals institutional confidence, while token unlocks have created downward pressure. Nevertheless, the ecosystem’s integration into DeFi—such as sUSDe’s 10% annualized yield—demonstrates growing utility [1].

While volatility remains a challenge, Kapoor’s thesis emphasizes Ethena’s structural advantages: a decentralized, yield-generating stablecoin with regulatory alignment and expanding infrastructure. Investors are advised to monitor technical levels and regulatory developments, as these could determine whether the current dip is a buying opportunity or a precursor to further consolidation.

Source:

[1] [Ethena (ENA) Price Dips, But Analyst Says the Best Is Yet to Come] [https://coinmarketcap.com/community/articles/6881f7352bc37507b2e68ed9/]

[2] [Ethena (ENA) : How It Works, Use Cases & Role in Crypto in ...] [https://investx.fr/en/learn/crypto/ethena/]

[3] [Ethena Price Today, ENA to USD Live Price, Market Cap & ...] [https://cointelegraph.com/ethena-price-index]

[4] [BlackRock USD (BLACKROCK-USD) latest stock news ...] [https://uk.finance.yahoo.com/quote/BLACKROCK-USD/news/]