Why did the price of ENA fall?

Ethena (ENA) dropped 0.53% in the last 24 hours, underperforming the overall crypto market, which was mostly flat (+0.02%). The main reasons are:

1. Weak price trends – ENA is struggling to stay above important price levels around $0.23–$0.24.
2. Selling by everyday investors – More ENA was sold than bought by retail traders, even though the Ethena team was buying.
3. Concerns about returns – The main way Ethena makes money, through a strategy called arbitrage, is now earning less than 4% per year, which is much lower than before (BitMEX).

Deep Dive

1. Technical Breakdown (Negative Signals)

ENA’s price is below its short-term and medium-term moving averages ($0.2415 and $0.2213), which usually means the price is trending down. The Relative Strength Index (RSI) is at 44.47, showing weak momentum, and the MACD indicator shows only a slight chance of upward movement but nothing strong. The price recently fell below a key support level at $0.2272, which could lead to testing even lower levels around $0.2232.

What to watch: If ENA can close above $0.23 (currently $0.229), it might stop further losses.

2. Retail Selling vs. Team Buying (Mixed Signals)

On January 8, the Ethena team bought 50 million ENA tokens worth $12.18 million (AMBCrypto). However, everyday investors sold $6.85 million more than they bought on the same day. Data from the blockchain shows smaller holders are taking profits, which outweighs the buying by larger holders or the team.

What this means: The market sees the team’s buying as not enough to balance out the selling pressure, especially since over half of ENA’s total supply (15 billion tokens) is already in circulation.

3. Lower Returns on Core Strategy (Negative Outlook)

Ethena’s main product relies on a trading strategy called delta-neutral arbitrage using USDe tokens. However, returns from this strategy have dropped below 4% annually (BitMEX), making it less attractive compared to safer investments like government bonds.

What to watch: The total value locked (TVL) in USDe is currently $6.63 billion. If it falls below $6 billion, it could indicate more investors are pulling out.

Conclusion

ENA’s recent price drop is due to weaker returns, negative technical signals, and selling by retail investors, despite the team’s efforts to buy back tokens. While the $12 million buyback helped temporarily, a lasting recovery will likely need improvements to the protocol or a more positive overall market environment.

Key point: Watch if ENA can hold above $0.22, especially with 171.8 million tokens ($39.4 million at current prices) becoming available on January 10–11.

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What could affect the price of ENA?

Ethena’s price is caught between rapid growth efforts and ongoing market challenges.

1. Restaking & Ethena Chain (Mixed Impact)
2. Stablecoin Competition (Downward Pressure)
3. Token Unlocks & Inflation (Downward Pressure)

In-Depth Look

1. Restaking & Ethena Chain (Mixed Impact)

What’s Happening: In June 2025, Ethena plans to launch restaking for its tokens $ENA and $sUSDe through partnerships with Symbiotic and LayerZero. This aims to make cross-chain transfers more secure and increase how these tokens can be used. People who stake their tokens can earn 30 times more Ethena rewards, plus extra perks like Symbiotic points and possible LayerZero airdrops. Later in 2025, Ethena will introduce the Ethena Chain, which will use $USDe as the “gas” (transaction fee) for decentralized finance (DeFi) apps such as lending and trading platforms.

What This Means for You: Restaking could boost demand for $ENA by locking up a large amount of tokens (290 million already locked). However, the success of LayerZero’s technology is crucial—if it doesn’t catch on, confidence could drop. The Ethena Chain, expected in 2026, carries some risk since it’s a new platform, but if it succeeds, it could become a major player in DeFi, offering long-term benefits (Ethena Docs).

2. Stablecoin Competition (Downward Pressure)

What’s Happening: Ethena’s stablecoin $USDe, with $9.3 billion in total value locked (TVL), now faces competition from BlackRock’s BUIDL ($2 billion) and Franklin Templeton’s USDtb. Other big players like MakerDAO’s DAI and Tether, which holds 58% of the stablecoin market, are putting pressure on returns. As a result, $USDe’s annual percentage yield (APY) has dropped from 15% in 2024 to about 5% expected in 2026.

What This Means for You: Lower yields make $USDe less attractive, which could reduce demand and hurt Ethena’s revenue from fees. Although Ethena’s $260 million buyback program in July 2025 temporarily boosted prices, large withdrawals—$8 billion redeemed after the October market crash—show the market remains fragile (Cryptoslate).

3. Token Unlocks & Inflation (Downward Pressure)

What’s Happening: About 41% of Ethena’s total 15 billion $ENA tokens are unlocked, with roughly 171.88 million tokens (worth $61.5 million) released every month. The largest 2,000 wallets face a 50% vesting cliff until September 2026, meaning half their tokens become available then. Despite buybacks, the circulating supply has grown 23% year-over-year.

What This Means for You: Ongoing selling by teams and investors releasing their tokens could keep prices under pressure. The big token unlock in November 2025 might push prices down toward the $0.20 support level if demand doesn’t keep up (Yahoo Finance).

Final Thoughts

Ethena’s price depends on successfully rolling out big initiatives like the Ethena Chain and restaking, while facing tough competition in the stablecoin market and managing token unlocks. The key indicator to watch is $USDe’s total value locked—if it falls below $10 billion for a sustained period, it could signal deeper problems. The big question: Can Ethena’s vision as an “Internet Bond” overcome the challenges of token dilution?

What are people saying about ENA?

The Ethena (ENA) community is currently divided between cautious buying and technical concerns. Here’s what’s trending:

1. $0.22 support level is critical
2. Large holders moving coins raise selloff worries
3. Experts point out risks in the protocol amid a weak market setup

In-Depth Look

1. @alicharts: $0.212 Support Is Key for a Bounce Back bullish

"$0.212 is the key support for Ethena. If it holds, a rebound toward $0.505 is possible."
– @alicharts (164K followers · 11.6K impressions · 2025-12-28 03:54 UTC)
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What this means: This is a positive sign for ENA. Holding this price level could stop sellers and encourage buyers to step in, especially since the Relative Strength Index (RSI) shows the coin is oversold on shorter timeframes.

2. @cryptoalphaid: Ethena Team Moves 18M ENA to Exchanges bearish

"Ethena Labs transferred 18.36 million ENA (worth $3.75 million) to Bybit – watch for potential selling pressure."
– @cryptoalphaid (4.3K followers · 997 impressions · 2025-12-20 04:16 UTC)
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What this means: This is a warning sign. Historically, when the team moves large amounts of ENA to exchanges, the price tends to drop. In 2025, 78% of similar moves led to price declines between 8% and 15% within three days.

3. @normiece: Raises Concerns About USDe Model’s Sustainability mixed

"Critical look at Ethena’s value flow and governance risks."
– @normiece (1.5K followers · 14.2K impressions · 2025-12-24 11:21 UTC)
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What this means: This is a cautious view. It points out that Ethena’s USDe stablecoin depends heavily on volatile funding rates and faces competition from established stablecoins like those from MakerDAO. However, it also notes that USDe’s supply has grown significantly to 12.4 billion.

Summary

Opinions on Ethena (ENA) are mixed. Technical traders are watching the $0.20 to $0.22 price range closely, while those focused on the project’s fundamentals are weighing risks related to the protocol against the growth of its synthetic dollar, USDe. Keep an eye on the $0.212 support level and USDe’s expansion across different blockchains. If the price falls below this support, it could trigger more selling. But if it holds, it might lead to a price recovery. Also, watch Ethena Labs’ wallet activity for clues about future supply and demand.

What is the latest news about ENA?

Ethena is showing mixed signals as traders watch for a possible technical breakout, while recent team actions have sparked debate about whether investors are accumulating tokens or selling off.

1. Key Breakout Approaching (Jan 10, 2026) – The technical setup points to a possible price jump if the $0.23 support level holds.
2. Team’s $12M Buyback (Jan 8, 2026) – Despite the buyback showing confidence, it didn’t stop ENA’s price from falling.
3. Bybit Deposit Raises Concerns (Dec 20, 2025) – 18 million ENA tokens moved to exchanges, raising worries about liquidity and potential selling pressure.

Deep Dive

1. Key Breakout Approaching (January 10, 2026)

Overview:
Ethena (ENA) is testing an important support level at $0.2272. Analysts have spotted a descending channel pattern, which often signals a potential price move. Trading volume remains high at $87.6 million over 24 hours, and signs of “smart money” accumulation suggest growing interest from institutional investors. The next resistance level is at $0.2309—if ENA breaks above this, it could reach $0.2382. If it fails, the price might drop back to $0.2232.

What this means:
This situation is cautiously optimistic for ENA. When price volatility tightens like this, it often leads to a big move. However, the current downward trend means we need to see strong price closes above resistance to confirm a breakout. (CoinMarketCap)

2. Team’s $12M Buyback (January 8, 2026)

Overview:
Ethena Labs bought back 50 million ENA tokens, spending about $12.18 million in two transactions. This increased their treasury holdings to nearly 790 million tokens. Despite this show of confidence, ENA’s price dropped by 7.27%, as retail investors sold more than institutions bought (22.59 million tokens sold vs. 15.75 million bought).

What this means:
This is a mixed signal. Buybacks usually indicate that the team believes in the project’s value, but the weak price response suggests overall market sentiment is still negative. Technically, ENA is trading below important moving averages and needs to climb back above $0.25 to signal a trend reversal. (AMBCrypto)

3. Bybit Deposit Raises Concerns (December 20, 2025)

Overview:
Ethena Labs moved 18.36 million ENA tokens (worth about $3.75 million) to the Bybit exchange as part of managing liquidity. The wallet still holds 20.11 million ENA ($4.23 million), but this move followed earlier withdrawals of 34.65 million tokens from another exchange, Gate.io.

What this means:
This is seen as a short-term negative because moving tokens to exchanges can signal potential selling pressure. However, it might just be routine treasury management. The concern grows because ENA’s 24-hour trading volume has dropped nearly 50% since December, which could hurt liquidity. (CoinMarketCap)

Conclusion

Ethena is caught between hopeful technical signs and some fundamental challenges. While patterns of accumulation and the growth of the protocol’s stablecoin supply (USDe exceeding $12 billion) point to long-term promise, upcoming token unlocks and competition from other synthetic dollar projects are weighing on momentum. The big question for Q1 2026 is whether ENA’s price will follow Bitcoin’s market trends or stand out with its unique yield opportunities.

What is expected in the development of ENA?

Ethena’s roadmap is focused on increasing its usefulness, expanding connections across different blockchains, and activating important features in its system.

1. Fee Switch Activation (Q1 2026) – Final approval to share protocol earnings with ENA token holders who stake their coins.
2. Ethena Chain Development (2026) – Launch a new blockchain dedicated to decentralized finance (DeFi) apps, using USDe as the transaction fee token.
3. Cross-Chain Security Expansion (2026) – Grow security for cross-chain transfers by supporting LayerZero and oracle networks through Symbiotic.
4. RWA and Institutional Integration (2026) – Increase adoption of USDtb stablecoin within U.S. regulatory guidelines, targeting institutional use.

Deep Dive

1. Fee Switch Activation (Q1 2026)

Overview
In September 2025, the Ethena Foundation confirmed that the conditions to activate the fee switch—which allows sharing protocol revenue with ENA stakers—were met. The final step requires approval from the Risk Committee and a community governance vote (Ethena Foundation).

What this means
This is positive news for ENA holders because staking rewards will be directly linked to the protocol’s income, such as the growth of USDe’s $9.3 billion supply in 2025. However, delays in approval or lower revenue than expected could limit the benefits.

2. Ethena Chain Development (2026)

Overview
Ethena plans to launch its own blockchain focused on financial applications like perpetual decentralized exchanges (DEXs) and loans that don’t require full collateral. USDe will be used as the gas token to pay transaction fees. The chain’s security will be supported by restaked ENA tokens (Mirror).

What this means
This is a long-term positive development that could make USDe a key asset in DeFi. However, there are risks such as competition from Ethereum Layer 2 solutions and potential delays in attracting developers.

3. Cross-Chain Security Expansion (2026)

Overview
Ethena is working with Symbiotic and LayerZero to improve security for USDe transfers across different blockchains. Restaked ENA will support decentralized validator networks (DVNs), which help verify transactions and maintain interoperability (Mirror).

What this means
This enhances the usefulness of ENA but depends on how widely LayerZero is adopted. If other stablecoins dominate cross-chain transfers, ENA’s growth could slow.

4. RWA and Institutional Integration (2026)

Overview
Ethena’s USDtb stablecoin, backed by BlackRock’s BUIDL fund and compliant with regulations, is gaining momentum. Partnerships with Anchorage Digital and Mega Matrix aim to establish USDtb as a trusted asset for institutional treasuries (Cointelegraph).

What this means
Institutional adoption could create steady demand for USDe, but regulatory challenges or changes in BlackRock’s policies could pose risks.

Conclusion

Ethena’s roadmap balances immediate revenue-sharing plans with long-term infrastructure projects, aiming to make USDe a foundational asset in DeFi. While activating the fee switch and expanding cross-chain security offer near-term growth opportunities, success depends on managing risks like exposure to other protocols and maintaining USDe’s attractive yields. Will Ethena be able to surpass competitors like MakerDAO in securing institutional stablecoin adoption?

What updates are there in the ENA code base?

Ethena’s recent software updates focus on improving governance and managing its treasury, with recent token movements showing active changes in the protocol.

1. Governance Fee Activation (September 15, 2025) – ENA token holders will vote on fee settings after approval from the Risk Committee.
2. Token Treasury Management (December 20, 2025) – Ethena Labs made strategic deposits to exchanges to help balance liquidity.

Deep Dive

1. Governance Fee Activation (September 15, 2025)

Overview: The Ethena Foundation announced that the Risk Committee has set the parameters for a new fee system. Now, ENA token holders will get to vote on how the protocol shares its revenue. This change gives token holders more control over how profits are distributed.

What this means: This is a positive development for ENA holders because it allows them to benefit directly from the protocol’s earnings. It could make the token more useful and encourage people to hold onto their tokens longer. The new fee system may also increase community involvement and help the token’s value grow.
(Source)

2. Token Treasury Management (December 20, 2025)

Overview: Ethena Labs transferred 18.36 million ENA tokens (worth about $3.75 million) to the Bybit exchange. This move is part of ongoing efforts to manage liquidity by making deposits and withdrawals to keep token supply balanced.

What this means: This action is neutral for ENA’s price—it helps keep the market liquid but could also lead to some selling pressure. It shows the protocol is actively managing its token supply to maintain stability, though short-term price swings might happen if large amounts of tokens are traded.
(Source)

Conclusion

Ethena’s latest updates highlight a focus on decentralized governance and smart liquidity management. These changes aim to align token holder interests with the protocol’s growth. It will be interesting to see if the new fee-sharing system helps boost USDe adoption in early 2026.