Why did the price of ENA fall?

Ethena (ENA) dropped 8.11% in the last 24 hours, performing worse than the overall crypto market, which fell 1.94%. The main reasons include:

1. Market-wide caution – Rising tensions between the U.S. and China, along with crypto sell-offs, put pressure on altcoins like ENA.
2. Technical breakdown – ENA’s price fell below an important support level at $0.47, triggering automatic sell orders.
3. Profit-taking – After a strong 147% gain over the past month, some investors sold their holdings near resistance levels.

Deep Dive

1. Macro Pressures (Negative Impact)

Overview:
The global crypto market fell by 1.94% amid renewed uncertainty over U.S.-China trade relations (The Defiant). Over $307 million worth of crypto positions were liquidated, with ENA among the hardest hit mid-sized tokens.

What this means:
Riskier assets like ENA are sensitive to global economic and political events. Investors shifted funds toward Bitcoin, which saw its market dominance increase slightly to 59.23%, as geopolitical risks rose.

What to watch:
The Federal Reserve’s interest rate decision on October 29. If the Fed signals a more cautious approach, it could boost investor confidence and risk-taking.

2. Technical Weakness (Negative)

Overview:
ENA’s price dropped below the 38.2% Fibonacci retracement level at $0.475 and its 7-day simple moving average (SMA) at $0.474. The Relative Strength Index (RSI) is at 44.98, indicating bearish momentum, and the MACD indicator shows a negative trend.

What this means:
Technical traders likely sold their positions as ENA lost key support. The next important support level is the 50% Fibonacci retracement at $0.42. If ENA falls below this, it could decline further toward $0.36.

3. Profit-Taking After Rally (Mixed)

Overview:
ENA’s price surged 147% over the past 30 days, driven by Terminal Finance’s $280 million in pre-launch deposits and growth in the USDe stablecoin (Yahoo Finance).

What this means:
Some investors likely sold to lock in profits near the $0.70 resistance level. On-chain data shows large holders (“whales”) moved 80 million ENA tokens to exchanges recently, suggesting potential selling pressure (@ali_charts).

Conclusion

ENA’s recent price drop is due to a combination of broader market caution, technical weakness, and profit-taking after a strong rally. Despite this, the project’s fundamentals—such as growing USDe adoption and the Terminal Finance launch—remain solid. Traders are currently focused on managing risk amid market uncertainty.

Key level to watch: Can ENA hold the 50% Fibonacci retracement at $0.42? A bounce here could indicate buyers stepping in, while a break below might lead to testing lows from June.

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What could affect the price of ENA?

Ethena’s price is caught between promising protocol upgrades and ongoing market challenges.

1. Fee Switch Activation – Sharing revenue with token holders could increase demand if approved (Positive)
2. USDe Adoption – Being the third-largest stablecoin helps grow the ecosystem but comes with risks (Mixed)
3. Regulatory Changes – Compliance with new laws may help, but scrutiny of synthetic assets poses risks (Negative)

In-Depth Analysis

1. Protocol Revenue Sharing (Positive Outlook)

What’s Happening:
Ethena plans to activate a fee switch that would give 15-50% of its protocol revenue to ENA token holders who stake their coins (Ethena docs). Since USDe, Ethena’s stablecoin, generates about $53 million in weekly fees (The Defiant), this could create strong buying interest for ENA.

Why It Matters:
If this fee switch goes live by late 2025, it could boost ENA’s price, similar to how Uniswap’s fee model helped UNI rise 60% in 2024. However, if the community delays approval, it might hurt investor confidence.

2. Stablecoin Competition & Growth (Mixed Outlook)

What’s Happening:
USDe’s supply has grown 4.6 times to $12.4 billion in 2025, making it the third-largest stablecoin. But it faces competition from FDUSD and possible new stablecoins backed by big players like BlackRock (Santiment).

Why It Matters:
USDe offers a higher yield (9%) compared to USDC’s 4%, attracting users. However, 78% of ENA tokens are held by a few large holders (“whales”), which could cause price swings if they sell off (CoinMarketCap).

3. Regulatory & Market Risks (Negative Outlook)

What’s Happening:
The GENIUS Act supports USDtb, Ethena’s stablecoin backed by BUIDL tokens, but SEC Chair Gary Gensler warned in February 2025 that “synthetic dollar protocols” like USDe might face enforcement actions.

Why It Matters:
Clear regulations could encourage institutional investors, but strict enforcement might force changes to USDe. Additionally, expected Federal Reserve rate cuts in October 2025 could increase crypto market liquidity. Still, ENA’s recent 27% drop over 60 days shows it’s sensitive to overall market shifts.

Conclusion

ENA’s future depends on successfully launching its revenue-sharing plan while managing stablecoin competition and regulatory challenges. The $0.45–$0.55 price range (around the 200-day moving average) is a key support level. Keep an eye on the Federal Reserve’s October 29 decision and the Q4 governance vote on the fee switch—both could spark a rally toward $0.75. The big question remains: does USDe’s growth justify unlocking 23% of ENA’s circulating supply through 2026?

What are people saying about ENA?

Ethena (ENA) is currently caught between hopes for a price breakout and strong resistance levels. Here’s what’s trending:

1. Technical stalemate – Buyers aim for a breakout above $0.70, while sellers defend key resistance points.
2. Whale activity – Arthur Hayes increases his holdings, showing strong long-term confidence.
3. Buyback program – A $260 million buyback is reducing available supply but also unlocking tokens.
4. USDe stablecoin growth – The synthetic stablecoin USDe reaches $10 billion in total value locked (TVL), benefiting from recent regulatory approvals.

Deep Dive

1. @MisterSpread: “$0.51 resistance flip threatens ENA’s recovery” Bearish

“$0.51 has turned into a supply zone after a failed breakout attempt. ENA needs daily closes above $0.65 to turn bullish.”
– @MisterSpread (89K followers · 2.1M impressions · 2025-10-22 13:41 UTC)
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What this means: In the short term, this is bearish. What was once support at $0.51 is now acting as resistance. ENA must hold above $0.37 to avoid a deeper price drop.

2. @Kingpincrypto12: “Double bottom signals ENA accumulation phase” Bullish

“Weekly double bottom pattern combined with the 200-day exponential moving average (D200EMA). Fundamentals align with USDe’s rising adoption.”
– @Kingpincrypto12 (62K followers · 890K impressions · 2025-10-05 08:30 UTC)
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What this means: This is a bullish setup if ENA stays above $0.45. The technical patterns resemble those seen before ENA’s rally earlier in 2025.

3. @CobakOfficial: “USDe hits #3 stablecoin spot – ENA’s regulatory edge” Bullish

“USDe’s market cap has surpassed $10 billion and is now compliant under the GENIUS Act. Investors are moving capital away from yield-limited competitors.”
– @CobakOfficial (310K followers · 4.8M impressions · 2025-08-11 03:25 UTC)
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What this means: This is positive for ENA’s use case, as USDe’s hybrid model now holds 11% of the stablecoin market.

4. @genius_sirenBSC: “$260M buyback vs. 41% unlocked tokens” Mixed

“Daily buybacks of $5 million are offsetting token unlocks, but 171 million ENA tokens were moved to exchanges last month.”
– @genius_sirenBSC (28K followers · 410K impressions · 2025-08-05 08:03 UTC)
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What this means: Neutral outlook. Buybacks help support the price floor, but the large inflow of tokens to exchanges suggests some investors may be taking profits.

Conclusion

The outlook for ENA is mixed. Technical resistance between $0.51 and $0.70 is challenging, but strong fundamentals like USDe’s growth and ongoing buybacks provide support. Keep an eye on the $0.70 resistance level—a sustained breakout above this could confirm bullish trends targeting $1.15 to $1.50. On the other hand, failure to break through may lead to a retest of the $0.37 support level. Watch weekly closing prices and USDe’s TVL, which has grown to $12.66 billion, for clearer direction.

What is the latest news about ENA?

Ethena is navigating a volatile market while growing its ecosystem. Here’s the latest update:

1. Terminal Finance Raises $280M Before Launch (Oct 28, 2025) – Ethena-supported decentralized exchange (DEX) is close to launching with strong liquidity commitments.
2. Plans for Equity Perpetuals Unveiled (Oct 28, 2025) – Ethena’s founder aims for 30x growth by entering the $120 trillion equity derivatives market.
3. ENA Price Drops 8% Amid Market Concerns (Oct 28, 2025) – Crypto outflows increase as U.S.-China trade tensions affect investor confidence.

In-Depth Look

1. Terminal Finance Raises $280M Before Launch (October 28, 2025)

What happened:
Terminal Finance, a decentralized exchange supported by Ethena, secured $280 million in pre-deposits from users across Bitcoin (BTC), Ethereum (ETH), and USDe vaults ahead of its planned launch in late 2025. The platform uses Ethena’s yield-generating stablecoins, sUSDe and USDtb (the latter backed by BlackRock BUIDL), and employs a “yield skimming” method to share earnings with liquidity providers. More than 10,000 wallets participated, and up to 10% of Terminal’s governance tokens will be reserved for holders of sENA.

Why it matters:
This development strengthens Ethena’s position in decentralized finance (DeFi) by creating a focused liquidity hub for its synthetic dollar ecosystem. If successful, it could increase the use of USDe and boost demand for ENA tokens. However, competition from established DEXs like HyperLiquid remains a challenge. (Cryptopotato)

2. Plans for Equity Perpetuals Unveiled (October 28, 2025)

What happened:
Ethena’s founder, Guy Young, shared plans to expand into equity perpetuals—crypto derivatives that track stock prices. He believes the current $4 trillion crypto perpetuals market could grow 30 times by tapping into the much larger $120 trillion global equities market. Ethena’s existing delta-neutral strategies, which help stabilize USDe, might be adapted to manage risks in equity products.

Why it matters:
This move could significantly expand Ethena’s market potential. However, there are still major challenges, including regulatory hurdles and limited liquidity for on-chain equity products. (AMBCrypto)

3. ENA Price Drops 8% Amid Market Concerns (October 28, 2025)

What happened:
The price of ENA dropped 8% to $0.47 as the broader crypto market pulled back, even though U.S. stock markets reached new highs. Across the crypto sector, liquidations totaled $307 million, with some linked to Ethena positions. This decline coincided with worries over stalled U.S.-China trade negotiations, which had already caused a 10% crypto market correction earlier in October.

Why it matters:
This price drop reflects general market caution rather than issues specific to Ethena. Traders are closely watching the $0.45 support level, which helped limit losses during September’s volatility. (The Defiant)

Conclusion

Ethena is balancing growth initiatives like the Terminal DEX launch and equity perpetuals plans with the realities of a volatile market. Its synthetic dollar system is gaining momentum, but ENA’s short-term price depends on overall market stability and how well Ethena executes its expansion. The big questions remain: Will Terminal Finance help establish USDe as a key DeFi stablecoin? And can Ethena overcome regulatory challenges to succeed in the equity derivatives space?

What is expected in the development of ENA?

Ethena’s roadmap is designed to grow its platform by increasing utility, governance, and ecosystem development through these key steps:

1. Fee Switch Activation (Q4 2025) – Share protocol earnings with ENA token holders who stake their coins.
2. Terminal Finance DEX Launch (Late 2025) – Improve liquidity for Ethena’s yield-generating assets.
3. Ethena Chain Development (2026) – Create a new blockchain for financial apps using USDe as the transaction fee token.
4. Generalized Restaking Expansion (Ongoing) – Strengthen cross-chain security through Symbiotic restaking.

Deep Dive

1. Fee Switch Activation (Q4 2025)

Overview:
Ethena’s fee switch, approved in November 2024, will redirect part of the platform’s revenue—such as earnings from USDe, which has a $12.4 billion market cap and generates about $53 million weekly—to ENA token holders who stake their tokens (called sENA). This change requires a final vote by the community and approval from the Risk Committee (Foresight News).

What this means:
This is positive for ENA holders because it links the token’s value directly to the platform’s success. However, there is a risk that the activation could be delayed or that revenue might be lower if USDe’s growth slows down.

2. Terminal Finance DEX Launch (Late 2025)

Overview:
Terminal Finance, a decentralized exchange (DEX) supported by Ethena and currently holding $280 million in assets before launch, will become the main trading platform within the Ethena ecosystem. It will allow trading between sUSDe/USDtb and popular cryptocurrencies like ETH and BTC, while sharing earnings with liquidity providers. Early users might also receive free token rewards through airdrops (Yahoo Finance).

What this means:
This development is good news for ENA because it increases the usefulness and liquidity of USDe. The main challenge will be competing with well-established DEX platforms like Uniswap.

3. Ethena Chain Development (2026)

Overview:
Ethena plans to launch its own Layer 1 blockchain focused on financial applications such as perpetual contracts and lending. This blockchain will use USDe as the gas token (the fee paid for transactions). ENA tokens that are restaked will help secure important infrastructure like data oracles and cross-chain bridges (Mirror).

What this means:
This is a long-term, ambitious project that depends heavily on successful execution. If successful, it could make ENA a key asset in decentralized finance (DeFi). However, delays or setbacks could reduce enthusiasm.

4. Generalized Restaking Expansion (Ongoing)

Overview:
Since June 2025, ENA tokens have been restaked through Symbiotic to secure cross-chain transfers of USDe using LayerZero technology. Future plans include supporting oracle networks and data availability layers, which will earn rewards from partner protocols (Mirror).

What this means:
This is positive for ENA because it increases demand for the token as collateral. However, there are risks related to potential vulnerabilities in the smart contracts used for restaking.

Conclusion

Ethena’s roadmap focuses on sharing revenue, integrating with DeFi platforms, and scaling infrastructure—all of which enhance ENA’s usefulness. The fee switch and Terminal Finance launch offer near-term growth opportunities, while the Ethena Chain is a higher-risk, higher-reward project in decentralized finance. The big question remains: Can ENA’s restaking model attract more institutional investment than competitors like EigenLayer?

What updates are there in the ENA code base?

Ethena’s recent updates focus on growing its DeFi partnerships and making its stablecoin more useful.

1. HyperEVM Integration (Sept 25, 2025) – Launch of sUSDe yield pools with Pendle, opening up more cross-chain earning opportunities.
2. Regulatory Compliance Upgrade (July 24, 2025) – Introduction of USDtb stablecoin, meeting U.S. GENIUS Act standards.
3. Fee Switch Activation (Sept 2, 2025) – ENA holders start earning a share of protocol fees through governance decisions.

Deep Dive

1. HyperEVM Integration (Sept 25, 2025)

What happened: Ethena introduced sUSDe yield pools on HyperEVM using Pendle’s platform. This lets users earn fixed returns on their assets across different blockchain networks. The initial limit for these pools is $100 million.
To make this work, Ethena updated its smart contracts to handle assets smoothly across chains and distribute earnings properly. Pendle’s system also supports Ethena’s strategy to reduce risk while improving how efficiently capital is used.
Why it matters: This is good news for ENA because it increases the usefulness of USDe across multiple blockchain ecosystems. It attracts users looking for steady returns and boosts the protocol’s income. (Source)

2. Regulatory Compliance Upgrade (July 24, 2025)

What happened: Ethena teamed up with Anchorage Digital to launch USDtb, a stablecoin backed 1:1 by cash and U.S. Treasury securities. This stablecoin complies with the U.S. GENIUS Act, a regulatory framework for digital assets.
The code was updated to provide transparent tracking of reserves and to include anti-money laundering (AML) and know-your-customer (KYC) checks. This balances Ethena’s decentralized approach with legal requirements.
Why it matters: This is neutral for ENA. It opens the door for more institutional users but introduces some centralization, which contrasts with Ethena’s original “crypto-native” philosophy. (Source)

3. Fee Switch Activation (Sept 2, 2025)

What happened: Ethena activated a system where 20% of the protocol’s revenue is shared with ENA token holders who stake their tokens. This change was approved through governance voting.
Smart contracts were updated to automate this profit-sharing, and audits were done to ensure the system is secure and free from vulnerabilities.
Why it matters: This is positive for ENA holders because it encourages them to hold their tokens longer and aligns their interests with the growth of the Ethena protocol. (Source)

Conclusion

Ethena’s latest updates highlight its focus on expanding its ecosystem and adapting to regulatory demands, strengthening USDe’s role in the $284 billion stablecoin market. While technical improvements boost its usefulness, meeting regulatory standards brings new challenges. The key question is how ENA will balance staying decentralized with attracting institutional users in future developments.