Why did the price of ENA go up?
Ethena (ENA) increased by 3.57% in the last 24 hours, despite a 15.47% drop over the past month. This recent rise is linked to updates in the protocol, technical market rebounds, and changing investor interest.
- Season 4 Rewards Released – Users can now claim vested ENA tokens, which helps reduce immediate selling pressure.
- Technical Bounce – Indicators show ENA was oversold and is now recovering in the short term.
- Altcoin Market Shift – A broader move into altcoins is boosting ENA, especially as USDT’s market share changes.
Deep Dive
1. Protocol Activity & Rewards (Positive for ENA)
Overview:
On November 7, Ethena launched its Season 4 rewards, distributing 3.5% of all ENA tokens. Of this, 1.5% is available to claim right away. Smaller wallets (those outside the top 2000 holders) get full access to their tokens immediately, encouraging them to hold onto their ENA.
What this means:
By releasing rewards gradually, the protocol helps prevent a flood of tokens hitting the market at once, which could lower prices. Meanwhile, Season 5 has started and will run through March 2026, offering new staking rewards that keep demand steady.
What to watch:
Keep an eye on daily token claims and the supply trends of USDe, the stablecoin linked to Ethena, after these rewards are distributed.
2. Technical Indicators Show Oversold Bounce (Mixed Signals)
Overview:
Before the recent price increase, ENA’s 7-day and 14-day Relative Strength Index (RSI) were near oversold levels (around 35), suggesting the token was undervalued. The MACD indicator also showed weakening downward momentum, and the price moved back above the 7-day simple moving average (SMA) of $0.3248.
What this means:
Traders saw these signals as a chance to buy, especially since ENA held support between $0.30 and $0.32. However, the next resistance level is at the 30-day SMA, around $0.41, which could limit further gains.
What to watch:
If ENA can stay above $0.35, it might aim for the next target near $0.48, based on Fibonacci retracement levels.
3. Shift in Altcoin Market Sentiment (Positive for ENA)
Overview:
The CoinMarketCap Altcoin Season Index rose by 40.91% over the past week, showing that investors are moving money from Bitcoin into alternative cryptocurrencies. At the same time, USDT (Tether) dominance has dropped into a “red zone,” which historically signals upcoming rallies in altcoins. ENA is considered one of the top coins to benefit from this trend.
What this means:
ENA is gaining from this broader “risk-on” environment, helped by its high volatility and potential for bigger returns (it’s down about 59% over the last 90 days). Additionally, Robinhood’s listing of ENA on November 6 made it easier for retail investors to buy.
Conclusion
ENA’s recent 24-hour price increase is driven by specific protocol events like reward releases and larger market trends favoring altcoins. However, risks remain, such as the shrinking supply of USDe stablecoins, which has dropped 40% since October. Key point to watch: Can ENA maintain its price above $0.33 if overall market sentiment worsens, as indicated by the Fear & Greed Index currently at 29?
What could affect the price of ENA?
Ethena’s price is currently caught between exciting new features and a shaky market environment.
- Fee Switch Activation (Positive) – Plans to share protocol revenue with stakers are close to approval.
- USDe Stability Concerns (Negative) – The supply of USDe dropped 40% as interest rates fell.
- Whale Activity (Mixed) – Large investors are buying more tokens, but upcoming token unlocks could increase selling pressure.
In-Depth Look
1. Protocol Revenue Sharing (Positive Outlook)
What’s Happening:
Ethena’s Risk Committee is moving forward with a “fee switch” that would let people who stake sENA earn 15-30% of the protocol’s revenue, which is about $76,000 per day right now (Ethena Foundation). For this to happen, the USDe stablecoin supply needs to stay above $6 billion, and its annual percentage yield (APY) must outperform benchmarks like Aave’s USDC.
Why It Matters:
Sharing revenue directly with stakers could encourage people to hold their tokens longer, especially if USDe’s growth picks up again. Similar fee switches in other projects, like UNI, have historically increased demand for governance tokens when paired with growth.
2. USDe Supply Drop and Yield Changes (Negative Outlook)
What’s Happening:
The supply of USDe has fallen sharply from $15 billion to $8.5 billion since October (Yahoo Finance) because funding rates turned negative. Lower yields made Ethena’s stablecoin less attractive.
Why It Matters:
ENA’s value depends heavily on USDe’s adoption. If yields stay low, more people might redeem their tokens, putting downward pressure on ENA’s price. However, if the Federal Reserve cuts interest rates in December, it could boost yields and increase demand again.
3. Large Investors and Token Unlocks (Mixed Outlook)
What’s Happening:
Big investors, or “whales,” bought about 23.93 million ENA tokens (around $8 million) in August (CoinMarketCap). But in October, $63 million worth of tokens became available for sale, which could increase selling pressure. Currently, about 49% of the total 15 billion ENA tokens are in circulation.
Why It Matters:
While large buyers like StablecoinX are actively buying back tokens (about $5 million per day), ENA needs steady demand to handle roughly 742 million tokens entering the market each month due to unlocks.
Conclusion
ENA’s future depends on whether USDe’s yields recover and the fee switch is successfully implemented to balance out the increase in token supply. Protocol improvements and partnerships, such as Anchorage’s GENIUS-compliant USDtb, offer positive momentum. Still, ENA remains sensitive to overall market risk.
Keep an Eye On: Will USDe’s APY climb back above 10% after potential Fed rate cuts, helping to revive its reputation as the “Internet Bond”?
What are people saying about ENA?
Ethena’s community is split between confident holders and cautious traders. Here’s what’s making waves:
- Big investors step in – Arthur Hayes’ purchase of over $1 million in ENA has sparked positive buzz.
- $5 target in sight – Analysts see technical signs pointing to a potential big price jump.
- Key resistance at $0.70 – This price level is crucial; breaking it could lead to gains, while failing might cause a drop.
In-Depth Look
1. @Kingpincrypto12: Double Bottom Pattern Suggests Price Rebound 🚀
“The weekly chart shows a double bottom and a retest of support at $0.45 – ENA could rally if it holds this level.”
– @Kingpincrypto12 (32K followers · 14K impressions · Oct 5, 2025, 8:30 AM UTC)
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What this means: This is a positive sign for ENA. A double bottom pattern often signals that prices may start rising, especially when supported at $0.45.
2. @MisterSpread: Losing $0.51 Support Raises Concerns 🐻
“ENA fell below $0.51 support and is now facing selling pressure – bearish until it breaks above $0.65.”
– @MisterSpread (67K followers · 43K impressions · Oct 22, 2025, 1:41 PM UTC)
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What this means: Short-term outlook is negative. When a price level that was support turns into resistance, traders often sell. Watch for strong buying above $0.65 to change this view.
3. @DylanTillEth: Cup-and-Handle Pattern Points to $1 Target 🚨
“A cup-and-handle pattern is forming – if ENA breaks out, $1 is the next goal.”
– @DylanTillEth (418K followers · 37K impressions · Aug 31, 2025, 10:03 AM UTC)
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What this means: This is a bullish pattern often leading to sharp price increases. Closing above $0.76 could speed up the move toward $1.
4. Token Unlock Wave 🌊
On August 5, 171.8 million ENA tokens (worth over $100 million) became available for trading, raising concerns about selling pressure and contributing to a 5.6% weekly price drop. Analysts note that 41% of ENA’s total supply is now liquid (CoinMarketCap).
What this means: This is a short-term negative factor, as token unlocks can lead to price swings. However, StablecoinX’s $260 million buyback program might help balance the market.
Conclusion
The outlook for ENA is mixed. Optimism from large investors is balanced by technical challenges. While broader adoption factors like USDe’s $12.4 billion supply growth (Crypto Stream) support the bullish case, the price needs to break above the $0.70 resistance to confirm upward momentum. Keep an eye on the $0.55–$0.70 range—a strong move above could push ENA past $1, while falling below might test $0.40. Will the idea of ENA as the “Internet Bond” hold? Monitoring ENA’s role in stablecoin yield markets could provide answers.
What is the latest news about ENA?
Ethena is managing market challenges through reducing its supply and carefully timed token releases. Here are the key updates:
- USDe Supply Drops 40% (Nov 10, 2025) – Investors pulled back from Ethena’s synthetic dollar amid market uncertainty.
- Season 4 Rewards Distributed (Nov 7, 2025) – Token rewards were finally released after delays, bringing cautious optimism.
- $54M Token Unlock (Nov 5, 2025) – A large amount of ENA tokens entered circulation, raising concerns about potential price pressure.
In-Depth Look
1. USDe Supply Drops 40% (Nov 10, 2025)
What happened:
The supply of Ethena’s USDe stablecoin fell sharply from $15 billion to $8.5 billion in October 2025. This happened because traders moved away from risky crypto strategies. USDe’s earnings depend on futures funding rates, which dropped as fewer people took leveraged positions. Additionally, a $19 billion wave of liquidations and Bitcoin’s price falling below $100,000 led many to redeem their USDe tokens.
Why it matters:
This is a negative sign for ENA. A smaller USDe supply means less revenue for Ethena and lower rewards for people staking their tokens, which can reduce the appeal of ENA. However, if the Federal Reserve cuts interest rates in December, investors might become more willing to take risks again, possibly helping demand recover. (Yahoo Finance)
2. Season 4 Rewards Distributed (Nov 7, 2025)
What happened:
Ethena released 3.5% of the total ENA tokens as rewards to users, with 1.5% available to claim right away. This came after a month-long delay and coincided with the start of Season 5, which will run through March 2026.
Why it matters:
This is mostly neutral for ENA. While releasing tokens can lead to more selling and lower prices, smaller holders got immediate access to liquidity, which might reduce selling pressure. After the announcement, ENA’s price briefly rose 9%, but it still remains about 60% lower than it was in October. (The Defiant)
3. $54M Token Unlock (Nov 5, 2025)
What happened:
On November 5, 171.88 million ENA tokens worth $54 million were unlocked and distributed to investors and core team members. Monthly token unlocks will continue until April 2027, with 45% of the total supply already available in the market.
Why it matters:
This is a short-term negative because new tokens entering the market can lead to selling pressure. However, if institutional holders keep their tokens, the long-term impact could be neutral. ENA’s price will face challenges unless demand grows enough to absorb the new supply, especially since over $30 billion worth of tokens remain locked. (Yahoo Finance)
Conclusion
Ethena is facing pressure from both falling demand for its stablecoin and ongoing token unlocks, which could hurt its price stability. On the other hand, delayed rewards and potential regulatory changes offer some hope for recovery. The big question is whether USDe’s earnings model can adjust to maintain its $8.5 billion market or if the token unlocks will push ENA’s price down further.
What is expected in the development of ENA?
Ethena’s roadmap is focused on growing its usefulness, improving security, and expanding its synthetic dollar ecosystem.
- Ethena Chain Launch (2026) – Building the main blockchain for decentralized finance (DeFi) apps
- Fee Switch Activation (Q1 2026) – Sharing protocol revenue with ENA token holders
- USDe Global Expansion (Ongoing) – Partnering with banks and platforms while following regulations
Deep Dive
1. Ethena Chain Launch (2026)
Overview:
Ethena plans to launch its own blockchain designed specifically for financial services like decentralized exchanges (DEXs), loans without full collateral, and complex financial products. USDe will be the blockchain’s native gas token (used to pay transaction fees), and ENA tokens that are restaked will help secure the network.
What this means:
This is positive for ENA holders because the token will play a key role in securing a fast and efficient DeFi blockchain. However, there are risks like possible delays in launching and competition from other blockchains such as Solana and Base.
2. Fee Switch Activation (Q1 2026)
Overview:
With approval from Ethena’s governance community, a fee-sharing system will be turned on. This means 20-30% of the protocol’s revenue—earned from USDe yield and trading fees—will be paid out to ENA stakers (Ethena Foundation).
What this means:
This is somewhat positive because it increases the usefulness of ENA tokens. However, the actual revenue depends on USDe’s adoption remaining strong, currently at $12.4 billion in supply (CoinMarketCap).
3. USDe Global Expansion (Ongoing)
Overview:
Ethena is working with banks like Anchorage Digital to launch USDtb, a stablecoin that complies with the GENIUS Act regulations. At the same time, it’s integrating USDe with popular platforms such as Aave, Pendle, and HyperEVM.
What this means:
This is positive if regulatory approvals come quickly, but could be negative if stablecoin regulations become stricter. The recent 42% growth in USDe supply over the past 30 days indicates strong demand (Dune).
Conclusion
Ethena’s roadmap combines technical innovation with regulatory compliance, positioning ENA as both a governance token and a source of yield. Activating the fee switch could boost demand for ENA, especially if market conditions are favorable. The key question remains: how will changing stablecoin regulations affect Ethena’s dual approach?
What updates are there in the ENA code base?
Ethena’s recent software updates focus on making the platform more scalable, compliant with regulations, and better connected with other blockchain projects.
- Stablecoin-as-a-Service Expansion (October 31, 2025) – Launched JupUSD and moved USDtb to a regulated system.
- Mint/Redeem Optimization (October 31, 2025) – Handled $2 billion in redemptions during market stress with no downtime.
- Multi-Chain Integrations (October 31, 2025) – Rolled out Ethena assets on CopperHQ, XLayer, and other platforms.
Deep Dive
1. Stablecoin-as-a-Service Expansion (October 31, 2025)
Overview: Ethena introduced JupUSD, a stablecoin designed for Jupiter Exchange, and moved USDtb’s smart contracts to Anchorage Digital, a regulated custody provider, to meet compliance standards under the GENIUS Act.
This means other platforms can now create their own compliant stablecoins using Ethena’s technology. Moving USDtb to Anchorage Digital adds a layer of security and regulatory trust by using an institutional-grade custodian.
What this means: This is positive for ENA because it expands Ethena’s use cases and aligns its stablecoins with U.S. regulations, which could attract more institutional investors. (Source)
2. Mint/Redeem Optimization (October 31, 2025)
Overview: Ethena successfully processed $2 billion in redemptions during a period of market volatility without any downtime, thanks to improvements in its backend systems.
The platform improved how it handles redemption requests and increased liquidity reserves to manage sudden spikes in demand. These upgrades likely include better smart contract efficiency and safety measures.
What this means: This is neutral for ENA’s value because it shows technical strength but doesn’t directly affect the token’s economics. However, it boosts user confidence during market stress. (Source)
3. Multi-Chain Integrations (October 31, 2025)
Overview: Ethena launched minting and redeeming features on CopperHQ and integrated with XLayer, Biconomy, and Pendle’s fixed-yield products.
These updates involved deploying smart contracts across multiple blockchain networks, making Ethena’s assets more accessible to users on Ethereum Layer 2 solutions and partner chains.
What this means: This is positive for ENA because deeper integration increases the usefulness of Ethena’s synthetic assets, encouraging more users to participate and boosting demand for ENA governance tokens. (Source)
Conclusion
Ethena’s recent updates focus on regulatory compliance, scalability, and expanding its ecosystem—important factors for maintaining its $13.8 billion total value locked (TVL) leadership. While the technical improvements reduce risks, wider adoption depends on how well its stablecoins gain traction. The big question remains: can Ethena’s infrastructure upgrades outpace competitors like MakerDAO’s new vault designs?