Why did the price of ENA fall?

Ethena (ENA) dropped 7.83% in the last 24 hours, underperforming the overall crypto market, which fell 3.6%. This decline is mainly due to profit-taking after recent gains, negative technical signals, and uncertainty around Hyperliquid’s USDh stablecoin proposal.

1. Technical breakdown – Price fell below important support levels
2. Proposal uncertainty – Market reacts to delayed Hyperliquid USDh voting results
3. Risk-off sentiment – Altcoin Season Index dropped 8.7% in 24 hours

Deep Dive

1. Technical Breakdown (Negative Impact)

Overview: ENA’s price fell below its 30-day simple moving average (SMA) at $0.70 and 7-day SMA at $0.68, triggering stop-loss orders. The Relative Strength Index (RSI) at 41.05 shows weakening momentum, and the MACD indicator confirms a bearish trend.

What this means: Traders saw the drop below $0.60 as a signal to sell. The next key support level is the 200-day exponential moving average (EMA) at $0.54. If the price falls below this, losses could deepen.

What to watch: A daily close above $0.65 (the 38.2% Fibonacci retracement level) would suggest the downtrend might be reversing.

2. Hyperliquid USDh Proposal Outcome (Mixed Impact)

Overview: Ethena’s plan to issue Hyperliquid’s USDh stablecoin (CoinDesk) faced a delay in validator voting results, originally scheduled for September 14. This uncertainty around the $150 million incentive program led some investors to take profits.

What this means: Although the proposal’s revenue-sharing model (95% of revenue to Hyperliquid) is positive for the long term, the delay caused short-term uncertainty and selling pressure.

3. Market-Wide Risk Aversion

Overview: The crypto Fear & Greed Index dropped to 47 (neutral), while Bitcoin’s dominance increased to 57.77%. Altcoins generally underperformed, with the Altcoin Season Index falling 8.7% in 24 hours.

What this means: ENA’s price tends to move closely with Bitcoin, with a 30-day correlation of 0.78 (IntoTheBlock). This means ENA is vulnerable when investors shift money into safer assets like Bitcoin.

Conclusion

ENA’s recent price drop is driven by technical selling, uncertainty around the Hyperliquid proposal, and a weaker altcoin market overall. While Ethena’s fundamentals, such as USDe growth, remain solid, short-term price action depends on holding the $0.60 support level.

Key things to watch: The outcome of the Hyperliquid validator vote and Bitcoin’s price movement. If Bitcoin falls below $110,000, ENA’s correction could continue.

What could affect the price of ENA?

Ethena’s price is currently influenced by a balance between its innovative technology and potential market risks.

1. Restaking Adoption – ENA’s role in securing cross-chain transfers may increase demand (positive).
2. Stablecoin Growth – USDe’s $12.4 billion supply and attractive yields could add value but come with risks (mixed).
3. Regulatory Changes – Compliance with the GENIUS Act adds credibility but limits some yield opportunities (neutral).

Deep Dive

1. Restaking & Ethena Chain (Positive Impact)

Overview:
In June 2025, Ethena upgraded its system to allow “restaking” of ENA and sUSDe tokens through Symbiotic. This means users can earn rewards called LayerZero points while helping secure transfers between different blockchains. The upcoming Ethena Chain, planned for 2024, will use ENA tokens to pay transaction fees and provide security for decentralized finance (DeFi) apps, such as lending platforms that don’t require full collateral.

What this means:
Restaking locks up a large amount of ENA tokens (over 290 million already staked), which reduces the number of tokens available to sell and increases demand for the network’s security. If Ethena Chain becomes popular, ENA could gain value similar to governance tokens like UNI, which benefit from active use within their ecosystems.

2. USDe Expansion vs. Stablecoin Risks (Mixed Impact)

Overview:
USDe has grown to become the third-largest stablecoin in crypto, with $12.4 billion in circulation and an 11% yield generated through strategies involving Ethereum (ETH). However, Aave, a major lending platform, has $4.7 billion tied up in USDe collateral, which could create risks if many users try to redeem their tokens at once (Chaos Labs).

What this means:
The growth of USDe benefits ENA holders through fees generated by the protocol (about $53 million weekly). But if USDe loses its peg to the dollar or faces a liquidity crisis, it could cause panic selling similar to what happened with Terra’s UST stablecoin collapse.

3. Regulatory & Institutional Shifts (Neutral Impact)

Overview:
Ethena has teamed up with Anchorage Digital to launch USDtb, a stablecoin that complies with the GENIUS Act and is backed by BlackRock’s BUIDL fund. However, the GENIUS Act prohibits stablecoins from paying interest, which limits the appeal of sUSDe to U.S. institutional investors.

What this means:
Following regulations helps attract traditional financial institutions (for example, Trump Media’s $6.4 billion investment in CRO), but it also restricts Ethena’s ability to offer higher yields. A positive outcome from the SEC and CFTC’s joint regulatory discussions on September 29 could improve this situation (MEXC).

Conclusion

ENA’s future depends on managing the growth of USDe while controlling risks. At the same time, restaking and increased institutional interest could help offset broader market challenges. Keep an eye on the $0.70 price resistance level.

What are people saying about ENA?

The Ethena (ENA) community is divided between excitement over a potential price breakout and concerns about upcoming token unlocks. Here’s what’s trending:

1. Price tension at $0.70 – Traders are watching closely for a clear breakout.
2. Big players moving – Arthur Hayes is buying, while others are selling to exchanges.
3. USDe stablecoin hits $7.7B – Growth in USDe is encouraging bullish sentiment.
4. August 5 unlock alert – 171 million tokens will unlock, raising fears of a selloff.
5. $1.50 target or bust – Optimists believe ENA could rise if Bitcoin cooperates.

Deep Dive

1. @CobakOfficial: USDe’s regulatory advantage is bullish

"USDe supply doubled to $10B in 30 days as GENIUS Act sidelines yield-bearing rivals. ENA up 160% monthly but still 2x below ATH."
– @CobakOfficial (89k followers · 2.1M impressions · 2025-08-11 03:25 UTC)
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What this means: Favorable regulations for USDe could keep demand strong for ENA’s synthetic dollar system. However, technical indicators like the RSI (68.92) suggest the price might pause or consolidate in the short term.

2. @AIxVC_Axelrod: Big holders accumulating vs. token unlocks create mixed signals

"Whales holding 100K-1M ENA increased holdings by 12% in July, but 171M token unlock (2.7% of supply) is coming August 5. Price is at a critical $0.60 support level."
– @AIxVC_Axelrod (62k followers · 890k impressions · 2025-08-06 13:30 UTC)
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What this means: There’s a tug-of-war between big investors buying and the risk of selling pressure from token unlocks, which could cause price swings near the $0.70 resistance level.

3. @genius_sirenBSC: Fee activation countdown is bullish

"ENA rose 43% this week as fee activation approaches: USDe supply exceeds $6B, protocol fees over $250M. sENA holders will share revenue if APY spreads widen compared to Aave."
– @genius_sirenBSC (31k followers · 410k impressions · 2025-06-07 14:11 UTC)
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What this means: Sharing protocol revenue with token holders could increase demand for ENA. But if fee activation is delayed beyond August, some investors might take profits early.

Conclusion

The outlook for ENA is mixed. Technical traders see potential energy building between $0.55 and $0.70, while fundamental analysts debate whether USDe’s growth can balance out selling pressure from token unlocks. Keep an eye on the August 5 unlock of 2.7% of circulating supply for signs of liquidity stress. Since ENA’s 30-day price correlation with Bitcoin is 0.78, Bitcoin’s movement near $118,000 could influence ENA’s next price move.

What is the latest news about ENA?

Ethena is making smart moves during altcoin season by focusing on decentralized finance (DeFi) and gaining support from big institutions. Here’s the latest update:

1. USDH Stablecoin Proposal (September 11, 2025) – Ethena plans to issue Hyperliquid’s USDH stablecoin, backed by collateral from BlackRock.
2. Altcoin Season Momentum (September 12, 2025) – ENA is becoming a favorite among institutions for its strong compliance and steady revenue during this shift toward altcoins.
3. Q4 Growth Spotlight (September 19, 2025) – Analysts point to ENA as a promising altcoin under $1, ready for potential price swings.

Deep Dive

1. USDH Stablecoin Proposal (September 11, 2025)

Overview:
Ethena Labs has proposed launching the USDH stablecoin for Hyperliquid. This stablecoin would be backed by BlackRock’s BUIDL tokenized fund and securely held by Anchorage Digital. The plan includes a $150 million incentive pool, sharing 95% of revenue with Hyperliquid, and governance by validators. This makes USDH a DeFi-native stablecoin with strong, institutional-level backing.

What this means:
This is a positive development for ENA because it broadens Ethena’s ecosystem and aligns with upcoming regulations (like the GENIUS Act). It could also increase demand for related stablecoins like USDe and USDtb. However, there are risks in execution and competition from other stablecoins like Paxos and Frax. (Bitrue)

2. Altcoin Season Momentum (September 12, 2025)

Overview:
The Altcoin Season Index (ASI) reached 76, indicating that investors are moving money into altcoins such as ENA. Institutions are focusing on projects that follow regulations and generate steady revenue. ENA fits this profile with a $12 billion USDe supply and over $500 million in annual revenue.

What this means:
ENA benefits from its mix of decentralized finance and traditional finance features. Still, broader economic factors like Federal Reserve policies and the strength of the U.S. dollar (DXY) could cause price swings. Also, the large amount of derivatives trading ($200 billion+ open interest) adds risk. (CoinEx)

3. Q4 Growth Spotlight (September 19, 2025)

Overview:
ENA was highlighted as a top altcoin under $1 because of its use as a synthetic dollar, attractive yields above 5%, and expansion across multiple blockchains. However, its price dropped 16% last week and faces resistance around $0.70.

What this means:
With a market cap of $4.8 billion and partnerships with companies like IBM and Franklin Templeton, ENA has strong long-term potential. Short-term challenges include upcoming token unlocks and fluctuations in Bitcoin’s market dominance. (MEXC)

Conclusion

Ethena’s focus on institutional partnerships and regulatory compliance with USDH and USDe positions it as a bridge between DeFi and traditional finance. However, uncertainty in the broader market and the excitement around altcoins mean investors should stay cautious. The upcoming Hyperliquid validator vote on September 14 could be a key moment for ENA’s price, but overall market trends will likely shape Q4’s outcome.

What is expected in the development of ENA?

Ethena’s roadmap centers on strengthening ecosystem security, expanding across multiple blockchains, and aligning the protocol for long-term growth.

1. Generalized Restaking Launch (June 26, 2025) – Enhancing security for cross-chain transfers by staking $ENA tokens.
2. Ethena Chain Infrastructure (2025–2026) – Developing decentralized finance (DeFi) apps that use USDe as the main collateral.
3. Locked $ENA Redistribution (Ongoing) – Encouraging long-term holding by adjusting token vesting and redistributing unlocked tokens.

In-Depth Look

1. Generalized Restaking Launch (June 26, 2025)

What’s happening:
Ethena is partnering with Symbiotic and LayerZero to create a restaking system that secures USDe transfers across different blockchains. People who stake their $ENA tokens will earn rewards through Ethena points, Symbiotic points, and possibly LayerZero incentives.

Why it matters:
This is good news for $ENA holders because it increases the token’s usefulness by linking it directly to the security of the network. However, the system depends on the stability of LayerZero’s DVN network, which introduces some risk (Ethena Labs).

2. Ethena Chain Infrastructure (2025–2026)

What’s happening:
Ethena plans to launch its own blockchain to support financial applications like decentralized exchanges (DEXs) and lending platforms. These apps will use USDe as both the transaction fee currency and as collateral. Staked $ENA tokens will help secure important parts of the network, such as data feeds (oracles) and transaction ordering (sequencers).

Why it matters:
This development could be a big step forward if USDe becomes widely used as a base asset. However, delays in building the chain or regulatory challenges could slow down progress (Ethena Docs).

3. Locked $ENA Redistribution (Ongoing)

What’s happening:
Since June 2024, users who claim unvested $ENA tokens must lock half of them in staking or restaking pools. The tokens that remain unlocked are redistributed to participants who align with the protocol’s goals.

Why it matters:
This approach helps reduce selling pressure and strengthens governance by rewarding long-term holders. On the downside, stricter vesting rules might discourage short-term investors or liquidity providers (Ethena Labs).

Conclusion

Ethena’s roadmap aims to increase the real-world use of $ENA in securing the network and managing governance, while expanding USDe’s role in decentralized finance. The new restaking system and blockchain infrastructure have the potential to boost the protocol’s revenue, but there are risks in execution. The big question remains: can Ethena’s vision for “Internet money” overcome regulatory and technical hurdles by 2026?

What updates are there in the ENA code base?

Ethena’s latest updates focus on improving staking features and expanding its ability to work across different blockchain networks.

1. HyperEVM Integration (August 7, 2025) – USDe yield markets launched on Pendle through HyperEVM.
2. Generalized Restaking (June 26, 2025) – $ENA now helps secure cross-chain USDe transfers using LayerZero technology.
3. sENA Liquid Staking (September 2, 2025) – Locked ENA tokens are now converted into flexible sENA tokens.

Deep Dive

1. HyperEVM Integration (August 7, 2025)

What happened: Ethena launched sUSDe yield pools on HyperEVM using Pendle’s platform. This allows users to earn fixed returns on USDe tokens across multiple blockchains. The initial pool size is limited to $100 million for sUSDe.

This setup uses Pendle’s system to turn yield into tradeable tokens, letting users earn 30 times more “Sats” rewards while keeping exposure to USDe’s stable returns. Limiting pool size helps manage risk and demand.

Why it matters: This is a positive development for ENA because it increases USDe’s usefulness across different blockchain ecosystems, attracting investors looking for steady returns while keeping liquidity under control. (Source)

2. Generalized Restaking (June 26, 2025)

What happened: Ethena introduced new restaking features for $ENA and sUSDe through Symbiotic, which helps secure USDe transfers across blockchains using LayerZero’s decentralized validator networks.

Stakers can earn 30 times daily ENA rewards, plus points from Symbiotic/Mellow and possible LayerZero bonuses. The system uses $ENA’s stable value (pegged to USD) to reduce risks during market ups and downs.

Why it matters: This update is somewhat positive for ENA because it strengthens security but adds complexity. Users who restake get more ways to earn rewards, but the success depends on how widely LayerZero is adopted. (Source)

3. sENA Liquid Staking (September 2, 2025)

What happened: Locked ENA tokens were converted into sENA, a liquid staking token that allows users to withdraw after a 7-day waiting period instead of being locked up rigidly.

Holders of sENA earn 40 times Season 3 rewards and can use sENA in decentralized finance (DeFi) apps like Pendle or Aave. ENA tokens from users who don’t follow the rules are redistributed to sENA pools.

Why it matters: This is good news for ENA because it makes staking more flexible and efficient, encouraging long-term holders to participate in the ecosystem’s growth through DeFi applications. (Source)

Conclusion

Ethena’s updates focus on improving security through restaking, making yield easier to access with HyperEVM, and increasing liquidity with sENA. These changes position USDe as a key building block in decentralized finance. The big question remains: will cross-chain adoption grow faster than regulatory challenges around synthetic assets?