Ethena's ENA token surged 110% from yearly lows, driven by high-volume trading and whale accumulation across the network.
Total value locked in Ethena rose to $6.17 billion as investor appetite for USDe boosted demand and pushed ecosystem growth.
The ENA token continues to rally as the yield on USDe surpassed 10%, offering more returns than many competing DeFi assets.
Ethena’s native token, ENA, recorded its sixth consecutive day of gains, reaching a high of $0.4617. This marks a 110% increase from its lowest price this year. With improved trading volumes and investor goodwill, the market capitalization has increased by almost three billion dollars. According to DeFi Llama, the total value locked (TVL) in the platform surpassed $6.17 billion, breaking its previous record of $6.1 billion. The bulk of this TVL comes from the USDe stablecoin, which now holds over $6 billion. An additional $159 million is held in Ethena Labs' USDtb.
Stablecoin Yield Climbs Above 10%
The recent boost in activity follows the USDe yield climbing above 10 percent for the first time this year. This return makes USDe one of the highest-yielding assets in the decentralized finance space. The delta-neutral strategy behind USDe is designed to maintain its $1 peg through market-neutral positions rather than asset backing.
Despite strong growth, there is uncertainty about USDe’s availability in the United States. A new law signed by President Donald Trump, the GENIUS Act, mandates that stablecoins offered in the country be fully backed by U.S. dollars or equivalent liquid assets. Ethena’s USDe, which uses algorithmic mechanisms instead of reserve backing, does not meet this requirement.
Whales Increase Holdings While Exchange Balances Fall
Data from blockchain analytics platform Nansen shows a notable rise in whale activity. Large holders now control 43.6 million ENA tokens, reflecting a 14.6% increase over the past month. Meanwhile, exchange balances dropped to 7.27 billion, suggesting strong accumulation and reduced selling pressure.
Source: TradingView
On the technical front, ENA broke past its May 14 swing high at $0.46151, signaling continued bullish momentum. The token is eyeing the 23.6% Fibonacci retracement level at $0.4841. A potential crossover between the 50-day and 100-day exponential moving averages may support a move toward the 50% retracement level at $0.7758.
