$ENA Quick Summary
Ethena is benefiting from bullish momentum with a total locked value (TVL) of $10 billion and enthusiasm from individual traders, but it faces significant risks from large investors (whales). Here are the latest updates:
Total locked value reaches $10 billion (August 12, 2025) - USDe has become the third largest stablecoin, driving ENA up by 150% within a month.
Buying rush from individual traders (August 12, 2025) - Individual traders led a 7-day rally despite warnings from whales, pushing ENA close to $0.85.
Increased liquidation risks (August 11, 2025) - Long buy positions worth $70 million are at risk of liquidation if the price of ENA falls below $0.70.
Detailed Analysis
1. Total locked value reaches $10 billion (August 12, 2025)
Overview:
The total locked value in Ethena has surpassed $10 billion, driven by the rapid adoption of USDe, which has become the third largest stablecoin with a market cap of $10 billion. The protocol is now processing a weekly trading volume across multiple chains of $743 million via LayerZero on 23 blockchain networks. Daily purchases of ENA worth $5 million and the emergence of a positive technical signal (golden crossover between the 50-day and 200-day moving averages) indicate bullish momentum.
What does this mean?
This is a positive indicator for ENA as reducing supply through repeated purchases and expanding use (such as a 42% increase in derivatives volume to $4.35 billion) creates scarcity in the currency. However, the movement of $29.8 million of ENA to exchanges from August 9-10 indicates the possibility of profit-taking. (Bitcoinist)
2. Buying rush from individual traders (August 12, 2025)
Overview:
Individual traders dominated the spot market activity, with three consecutive days of positive net buying totaling 8.33 million ENA. ENA's price rose by 31% over the week to reach $0.85, supported by bullish technical signals such as the Parabolic SAR turning positive and the Relative Strength Index (RSI) at 74, indicating to avoid extreme overbought levels.
What does this mean?
This is a neutral-bullish indicator as the rallies led by individual traders may be fragile without support from large investors. CryptoQuant data shows no large orders from whales in the last 30 days, indicating that whales are waiting for clearer signals before entering. (AMBCrypto)
3. Increased liquidation risks (August 11, 2025)
Overview:
ENA's price rose by 80% in August, putting long buy positions at risk. A price drop to $0.70 could lead to the liquidation of buy positions worth $70 million, according to CoinMarketCap data. Profit-taking is expected between $0.80 and $0.90, especially with $29.8 million of ENA recently moving to exchanges.
What does this mean?
This is a negative indicator in the short term as the accumulation of long positions increases price volatility. However, price support at $0.70 aligns with the 50-day moving average, which may alleviate the severity of declines. (CoinMarketCap)
Summary
Ethena's growth heavily relies on the adoption of USDe and repeated purchases, but the accumulation of long positions and the hesitance of large investors pose short-term risks. Will the momentum from individual traders be enough to push ENA past $1, or will profit-taking lead to a price correction?
