$ENA Quick summary
Ethena faces challenges related to opening new tokens and liquidity risks, amid increasing regulatory support. Here are the latest updates:
Opened tokens worth $106 million (August 5, 2025) – This could lead to selling pressure as 2.6% of the total ENA supply enters the market.
The GENIUS Act strengthens USDe (August 5, 2025) – A significant increase of 75% monthly in the supply of the yield-bearing stablecoin.
Warning of liquidity risks in Aave (August 5, 2025) – Concerns about re-hypothecation of collateral could threaten systemic stability.
Detailed analysis
1. Opened tokens worth $106 million (August 5, 2025)
Overview: 171.8 million ENA tokens were opened, equivalent to 2.6% of the total supply, valued at nearly $100 million on August 5, bringing the total opened tokens to 41%. Recipients may sell these tokens, but the expansion of the Ethena ecosystem, such as the adoption of institutional vaults, may alleviate selling pressure.
What does this mean? Short-term negative impact due to increased supply, but positive in the long term if institutions absorb the open tokens. Trading volume dropped by 3.9% after opening, reflecting a state of caution.
(CoinMarketCap)
2. The GENIUS Act strengthens USDe (August 5, 2025)
Overview: The issuance of the GENIUS Act in July banned direct yields from issuers, increasing the demand for collateralized USDe (sUSDe) from Ethena. The supply of USDe increased by 75% to $9.3 billion, making it the third largest stablecoin.
What does this mean? A positive signal for ENA, with the protocol's revenues growing and its adoption increasing. The price of ENA rose by 128% over 30 days, but the decrease in the trading volume of USDe by 22.9% indicates short-term profit-taking.
(CoinMarketCap)
3. Warning of liquidity risks in Aave (August 5, 2025)
Overview: Chaos Labs warned that Aave is exposed to 55% of USDe collateral amounting to $4.7 billion through re-hypothecation. A mass redemption event could destabilize both protocols.
What does this mean? Neutral to negative systemic risk. Despite the growth of USDe (now $9.3 billion) which strengthens Ethena's position, the heavy reliance on Aave increases the system's fragility.
(Crypto.News)
Summary
Ethena balances the rapid growth of USDe and the risks of opening tokens and liquidity risks associated with Aave. While regulatory changes and increased demand for yields support reliance, liquidity risks and supply inflation remain ongoing challenges. Will the momentum of USDe outweigh the risks of reducing leverage in the third quarter of 2025?
