$ENA
ETHENA: A Personal Analysis

Looking at the 14-month funding fee history below, I'd like to share my thoughts on Ethena (ENA), one of the standout projects from the previous bull market.

Ethena pioneered a revenue model that capitalized on exchange funding fees - essentially collecting these fees and distributing interest to stablecoin issuers. For this model to generate substantial revenue, there needs to be significant divergence in funding rates (whether positive or negative).

However, the landscape has dramatically changed. Numerous competing projects and hedge funds have emerged targeting the same funding fee opportunity that Ethena once dominated alone. This intense competition has diluted Ethena's market share, pushing funding fees close to zero.

The simple reality is that Ethena has lost its core revenue driver to competitors. They're no longer generating the same level of income, with many players now executing this strategy more effectively. The profitable market Ethena once exploited has essentially disappeared - it's become too crowded and inefficient.