A detailed analytical article about Ethena (ENA) — combining facts, critical reflection, and market context:
Author: Taras (Tar_Agustin Dolney tDYC)
What is ENA?
#ENA — the native token of Ethena, a protocol on Ethereum that creates the synthetic dollar USDe (Internet Bond). USDe is supported by a delta-neutral strategy: ETH (or BTC/stETH) as collateral + short positions in perpetual futures to maintain price stability without involving bank infrastructure.
ENA is used as a governance token and allows voting — including protocol updates, risk parameters, and DAO development.
Who is behind Ethena?
The project launched in March 2024. The team is led by Guy Young. Among the investors are Binance Labs and Dragonfly Capital, which provided over $14 million in the seed round.
Token allocation:
15 billion ENA max-supply,
at launch ~1.425 billion in circulation (~9.5%)
30% — Core team (with cliff-approximation and distribution over 1–3 years)
the rest — for investors, fund resources, ecosystem, and airdrop.
Reality vs Expectations
The crypto scene has seen smooth criticism — the forced locking of airdrop recipients (at least 50%) has caused outrage in the community due to the lack of prior voting. However, the goal is to keep the project long-term. Moreover, new use cases are being added — staking ENA, cross-chain integrations, restaking for LayerZero, DAO governance, Ethena Chain plans, etc.
Among the investors — Tokka Labs spent over 896 ETH (~$3.1 million) to purchase ENA at the very beginning, indicating the seriousness of interest from major players. The analysis also mentions Pantera and Arthur Hayes among the buyers, with tokens/USDe increasing TVL and protocol fees.
📈 Market dynamics
ATH $1.52 — reached on April 11, 2024
Lowest $0.20 — September 2024
As of 2025, the price is ~ $0.60–0.66, -60% from the peak, with volatility ~110–124% per year.
For example, in March 2025, the price fell amid the unlocking of 833 million tokens (~$60 million), causing mass sell-offs — a drop to support at $0.326–0.259. Possible growth potential — up to $0.602, if the $0.434 level becomes support.
In April 2024 — a 329% increase from the starting price, with active hype among "whale" investors. By mid-2024, the protocol had gained significant capitalization ($500M–$2 billion).
⚖ Advantages and risks
✅ Advantages
A unique DeFi approach to creating a stable currency without bank dependency
Strong support from Binance Labs and Dragonfly Capital
USDe + Internet Bond as a potentially sustainable income model
Governance model, staking, and restaking scenarios.
⚠️ Risks
Large token unlocks — a source of instability
Criticism due to lack of transparency in unlock conditions
Some association with Terra UST is perceived critically
The strategy depends on derivative markets and funding rates, which can change the dynamics of USDe returns and the ENA token itself.
Prospects
ENA — a project with medium-term potential, especially if successfully implemented:
cross-chain integrations
launch of Ethena Chain
adoption of BTC/stETH as collateral
development of DAO and community-driven governance
stable growth of TVL and fee commissions.
Interpretative advice
#Ethena — a serious DeFi experiment with real potential. Investors looking for a crypto-native stablecoin with yield mechanisms may find an interesting idea here. However, long-term success depends on the implementation of the roadmap, community support, and stability of unlock cycles.
Brief overview:
Aspect/ Assessment/Comment
Regulation/ Moderate, DeFi protocol under ETH
Team and investors/ Guy Young, Binance Labs, Dragonfly, Tokka Labs
Tokenomics/ 15B ENA, 1.425B at launch, unlock until 2028
Reality/ Working protocol, smart contracts, DAO
Volatility/ Very high — >100% annually
Risks/ Unlocks, dependency on funding rate, analogy with UST
Prospects/ Growth upon success of USDe, staking, cross-chain, DAO
