Ethereum News Today: Ethena's ENA: Correction Near End as Bullish Fundamentals Rise

Ethena’s governance token, ENA, has been a focal point in recent market discussions, as network metrics suggest it might be undervalued despite short-term price fluctuations. The token has experienced a 7% decline since August 19 and an additional 4% drop in the last three hours, according to market data platforms [1]. Over the past year, ENA has surged 117%, ranking among the top five DeFi assets in yearly growth and securing a spot in third place for daily trading volume within the DeFi sector [1]. The token's current market cap stands at $4.15 billion, with a fully diluted valuation of $9.41 billion and a circulating supply of 6.6 billion ENA, representing 44% of its maximum supply of 15 billion ENA [1].

The token’s price performance reflects a mixed technical outlook. While ENA has fallen 26% since August 11, technical indicators remain bullish, with the Relative Strength Index (RSI) above 50 and the Moving Average Convergence/Divergence (MACD) showing positive momentum [2]. The token recently completed a five-wave upward movement, followed by an A-B-C correction structure, reaching the 0.382 Fibonacci retracement level. Analysts suggest that ENA could be at the end of a correction phase or entering a more extended W-X-Y pattern, which may lead to further downward movement toward $0.54 before a potential rebound [2].

In parallel, Ethena’s synthetic dollar, USDe, has emerged as a key driver of ENA’s value proposition. The stablecoin recently surpassed $12 billion in market capitalization, capturing more than 4% of the global stablecoin market, according to Messari data [3]. This growth is attributed to rising perpetual funding rates, which have more than doubled since the second quarter. USDe’s business model, which leverages arbitrage against declining treasury yields, has positioned ENA as a compelling asset in bullish market conditions [3]. Furthermore, the launch of Ethena’s Digital Asset Treasury is anticipated to attract additional institutional inflows [3].

Ethena Labs has also expanded USDe’s collateral base to include BNB, XRP, and Hyperliquid’s HYPE, under a new Eligible Asset Framework. The framework sets clear liquidity benchmarks to mitigate risks such as slippage and execution delays [4]. BNB, the first asset approved under the framework, meets criteria such as $1 billion in two-week open interest and sufficient market depth. This strategic move supports Ethena’s vision of reshaping global finance through synthetic stablecoins and is expected to enhance USDe’s scalability [4]. Founder Guy Young has forecasted that USDe’s supply could reach $20 billion within a month if current market conditions persist [4].

Market dynamics are further bolstered by macroeconomic developments, including the Federal Reserve’s recent policy shifts. USDe’s growth has coincided with a broader reassessment of yield-bearing assets following Jerome Powell’s hawkish speech at Jackson Hole [3]. As investors seek alternatives to traditional stablecoins, Ethena’s innovative approach—combining synthetic dollar issuance with a governance token—has positioned it as a potential disruptor in digital asset infrastructure [3].

The recent volatility in ENA’s price, while concerning in the short term, has not eroded its long-term fundamentals. Despite a 20.64% drop from its one-week high of $0.79, ENA remains up 27.81% from its one-month low of $0.49 [1]. The token has also outperformed major cryptocurrencies like Bitcoin (ETH) and Ethereum (ETH) in relative performance metrics, gaining 12.2% against Bitcoin and 31.21% against Ethereum over the past year [1]. These figures suggest that ENA continues to attract traders seeking exposure to a rapidly evolving DeFi ecosystem [1].

With USDe’s market cap approaching $12 billion and the token’s technical indicators remaining bullish, ENA appears to be navigating a critical inflection point. While short-term bearish sentiment persists, long-term momentum remains intact, driven by expanding collateral options, institutional interest, and favorable macroeconomic conditions. The key will be how ENA reacts to the $0.75 resistance level, which could determine the trajectory of its next move [2].

Source:

[1] Ethena Price, ENA Price, Live Charts, and Marketcap (https://www.coinbase.com/price/ethena)

[2] Ethena (ENA) Correction Could be Over After 25% Fall (https://www.ccn.com/analysis/crypto/ethena-ena-price-correction-over/)

[3] Ethena's USDe Surges Past $12B, Captures 4% of ... (https://cryptodnes.bg/en/ethenas-usde-surges-past-12b-captures-4-of-stablecoin-market/)

[4] Ethena Labs targets $20B USDe growth as it adds BNB, XRP ... (https://finance.yahoo.com/news/ethena-labs-targets-20b-usde-174426584.html)