Why did the price of ENA go up?
Ethena (ENA) increased by 3.29% in the past 24 hours, outperforming the overall crypto market’s 2.76% gain and bouncing back from recent losses. The main reasons behind this rise include:
- Strategic Partnership: Safe Foundation and Ethena Labs teamed up to encourage more use of USDe in institutional wallets.
- Grayscale Listing: ENA was added to Grayscale’s "Assets Under Consideration" list for potential future investment products.
- Technical Rebound: Oversold market conditions and key support levels sparked buying activity.
Deep Dive
1. Safe Partnership Boost (Positive Impact)
Overview: Ethena Labs partnered with Safe Foundation to increase the use of USDe in institutional wallets. They introduced a 10x rewards multiplier for USDe held in Safe multisignature wallets and offered gas-free Ethereum transactions for USDe holders (crypto.news). Safe currently secures $65.1 million in staked USDe (called sUSDe), which makes up 85% of Ethena’s assets within its ecosystem.
What this means: This partnership encourages institutions to allocate more treasury funds to USDe, boosting demand for Ethena’s ecosystem and its native token, ENA. Lower transaction fees also make USDe more competitive compared to traditional stablecoins.
2. Grayscale Institutional Interest (Positive Impact)
Overview: Grayscale added ENA to its "Assets Under Consideration" list, signaling growing institutional interest in decentralized finance (DeFi) and synthetic dollar protocols (CoinMarketCap).
What this means: Being listed by Grayscale adds credibility and suggests that institutional investments could flow into ENA in the future. Historically, assets on this list often see price increases. ENA is categorized under "Financials," reflecting its role in yield-generating stablecoins.
3. Technical Rebound (Mixed Impact)
Overview: ENA’s Relative Strength Index (RSI14) dropped to 41.63, close to oversold levels, while its price bounced off the 78.6% Fibonacci retracement level at $0.206 and stayed above the pivot point of $0.221.
What this means: Short-term traders took advantage of the oversold conditions to buy, but resistance remains near the 50-day Exponential Moving Average (EMA) at $0.232. The MACD indicator also turned positive (+0.00067), suggesting a shift in momentum.
Conclusion
The collaboration with Safe and Grayscale’s recognition helped ENA recover, though technical signals advise cautious optimism. Key points to watch: Track USDe adoption in Safe wallets and updates from Grayscale on new investment products to confirm if institutional interest continues to grow.
What could affect the price of ENA?
Ethena’s price depends on how well its stablecoin USDe is adopted, upcoming token releases, and changes in regulations.
- USDe Growth – A partnership with Safe could increase institutional use of ENA tokens.
- Token Unlocks – Half of all ENA tokens are still locked, which could lead to price drops if many holders sell.
- Regulatory Challenges – New rules in Dubai might slow USDe’s expansion worldwide.
Deep Dive
1. USDe Adoption & Partnerships (Positive Outlook)
Overview: The supply of Ethena’s USDe stablecoin doubled from $3 billion to $6 billion in 2025. This growth was helped by partnerships with platforms like Bybit and Deribit, plus Safe’s gas-free transactions for institutions. Safe also offers a 10x points bonus for USDe holders, targeting decentralized organizations (DAOs) and treasury funds.
What this means: More use of USDe increases the value of ENA tokens because holders earn staking rewards and have a say in governance. Since 83% of Safe’s Ethena tokens are staked, strong institutional interest could help keep demand steady and reduce selling pressure from regular investors.
2. Token Unlocks & Whale Activity (Potential Risks)
Overview: About 7.96 billion ENA tokens (53% of the total supply) are currently in circulation, with more tokens unlocking every month until 2027. In December 2025, Ethena Labs moved 18.36 million ENA (worth $3.75 million) to Bybit, which might indicate upcoming selling. On the other hand, Mega Matrix bought $6 million worth of ENA to add to its treasury.
What this means: Each month, roughly $12 million worth of new tokens become available, which could flood the market and lower prices. However, buyback programs (like a $260 million plan in 2025) and trusted custody partners such as Coinbase Prime may help absorb some of this selling pressure.
3. Regulatory Ambiguity (Mixed Effects)
Overview: Dubai has excluded algorithmic stablecoins like USDe from its “fiat crypto token” category, making banking partnerships more complicated. Meanwhile, the U.S. passed the GENIUS Act, which officially recognizes USDtb, Ethena’s compliant stablecoin version.
What this means: Stricter or unclear regulations in places like Dubai might slow USDe’s growth there, but clearer rules in the U.S. could encourage more institutional investment. ENA’s price will depend on how well it navigates these different regulatory environments.
Conclusion
Ethena’s future depends on growing USDe’s use while managing the risks from token unlocks and regulatory challenges. The $0.22 price level has held strong twice since September 2025, and the Relative Strength Index (RSI) at 32 suggests a possible rebound if market sentiment improves. Keep an eye on the USDe/Total Stablecoin Market Cap ratio—if it rises above 1.5% (currently 1.3%), it could signal positive momentum. Also, watch whether ENA’s Pendle integrations can help reduce volatility caused by token unlocks.
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What are people saying about ENA?
The Ethena (ENA) community is divided between cautious optimism and technical doubts. Here’s what’s making waves right now:
- A falling wedge pattern could push prices up by 120% 🚀
- A sharp drop in Total Value Locked (TVL) raises concerns about long-term strength 📉
- Big investors, known as whales, are buying despite a weak market structure 🐋
- A bear flag pattern signals a possible 17% price drop 🚨
Deep Dive
1. @crypto_nuclear: Falling Wedge Breakout Looks Bullish
"ENA is nearing a breakout from a 12-hour falling wedge – if confirmed, a 120% rise to $1 is possible."
– @crypto_nuclear (2,962 followers · 7,229 impressions · 2026-01-12 03:52 UTC)
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What this means: A falling wedge is a chart pattern that often signals a price reversal. If ENA breaks above $0.28, it could gain momentum and move higher.
2. @BanklessTimes: TVL Drop Signals Bearish Outlook
"ENA’s TVL has fallen by $8 billion since October – this raises questions about long-term demand, even though $0.23 support is holding."
– @BanklessTimes (2,335 followers · 28,582 impressions · 2026-01-11 08:04 UTC)
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What this means: TVL measures the total assets locked in the protocol, reflecting its usage. A big drop suggests fewer users or less activity, which is a negative sign, though the price hasn’t fully reacted yet.
3. @alicharts: Whales Are Buying, Indicating Possible Strength
"Technical indicators show selling may be slowing down – whales are accumulating ENA around $0.20."
– @alicharts (164,400 followers · 8,301 impressions · 2025-12-22 04:00 UTC)
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What this means: This is a cautiously positive sign. Large investors might be preparing for a price rebound, but ENA needs to break above $0.28 to confirm a trend change.
4. @KlondikeAI: Bear Flag Pattern Suggests Short-Term Drop
"A bear flag pattern on the 4-hour chart suggests shorting ENA at $0.2058 with a target of $0.1791, a 17% decline."
– @KlondikeAI (3,022 followers · 7,672 impressions · 2025-12-30 20:01 UTC)
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What this means: This pattern points to a likely short-term price drop. However, if ENA holds above $0.22, the pattern might fail due to market volatility.
Conclusion
Opinions on Ethena (ENA) are mixed. Technical traders see potential for a rebound, while fundamental analysts are concerned about the protocol’s health. Key levels to watch are $0.28 for a confirmed upward move and $0.22 for a possible bearish acceleration. With open interest in derivatives up 11% this week, expect increased price swings.
What is the latest news about ENA?
Ethena’s recent updates combine strong institutional interest with practical ecosystem improvements, creating a steady path forward.
- Safe Boosts USDe Integration (January 13, 2026) – Safe teams up with Ethena to offer gas-free USDe transactions and 10x rewards for multisig wallet users.
- Grayscale Considers ENA for Investment Funds (January 13, 2026) – Grayscale adds Ethena (ENA) to its watchlist for potential future investment products.
Deep Dive
1. Safe Boosts USDe Integration (January 13, 2026)
Overview:
Safe Foundation, which manages over $60 billion in assets, has partnered with Ethena Labs to speed up the use of USDe stablecoin within Safe Smart Accounts. This partnership allows USDe holders to make transactions on the Ethereum mainnet without paying gas fees (transaction costs) and offers a 10x boost in Ethena’s Sats Points rewards program for multisig wallets. Currently, more than 83% of Ethena’s capital held in Safe accounts is staked in sUSDe, showing strong interest from institutional investors looking for reliable yield strategies.
What this means:
This partnership is a positive sign for Ethena (ENA) because it strengthens USDe’s role in managing institutional funds, which could increase the stablecoin’s usefulness and generate more revenue for the protocol. The enhanced rewards may attract more investment, but ongoing success depends on maintaining attractive yields despite market ups and downs.
(Source: Crypto.News)
2. Grayscale Considers ENA for Investment Funds (January 13, 2026)
Overview:
Grayscale, a major digital asset manager, has added ENA to its list of 36 assets being evaluated for future investment products. They highlighted ENA’s role in decentralized finance (DeFi) and its innovation with synthetic dollar tokens. While this shows growing institutional interest, it doesn’t guarantee that Grayscale will launch products involving ENA, as they still need to meet regulatory, custody, and liquidity requirements.
What this means:
This news is cautiously optimistic for ENA. Being on Grayscale’s radar increases visibility and the chance of institutional investment, but final approval depends on regulatory clarity and other factors. In the short term, this could boost market sentiment, but real impact will come only if new products are officially launched and market conditions are favorable.
(Source: CoinMarketCap)
Conclusion
Ethena is making progress by expanding its ecosystem through Safe’s treasury integration and gaining institutional recognition from Grayscale. These developments strengthen Ethena’s position in the DeFi space despite current market challenges. The key question remains: will ongoing yield incentives and clearer regulations drive USDe’s next phase of growth?
What is expected in the development of ENA?
Ethena’s roadmap is focused on growing its usefulness, governance, and connections across different blockchain networks.
- Custody Yield with Ceffu (Jan 12, 2026) – Improved ways to earn yield on USDe holdings.
- USDtb Stablecoin Launch (2026) – A new, U.S. regulation-compliant stablecoin backed by real dollars.
- Cross-Chain Expansion – Bringing USDe to more Layer 2 blockchain platforms.
Deep Dive
1. Custody Yield with Ceffu (Jan 12, 2026)
Overview: Ethena is teaming up with Ceffu, a trusted institutional custody service, to better manage and grow the yield on USDe reserves. This means they want to make the money backing USDe work harder, while keeping it safe and secure.
What this means: This is good news for Ethena’s native token, ENA, because it could attract big investors looking for regulated and secure ways to earn yield. However, relying on a centralized custodian like Ceffu may raise concerns for those who prefer fully decentralized systems (CoinMarketCal Bot).
2. USDtb Stablecoin Launch (2026)
Overview: Ethena plans to introduce USDtb, a stablecoin backed 1:1 by U.S. dollars and compliant with the U.S. GENIUS Act. They’re partnering with Anchorage Digital, a well-known digital asset platform, to bring this to market. This move aims to connect Ethena’s ecosystem more closely with traditional finance.
What this means: This could be positive or neutral for Ethena. USDtb adds variety to their stablecoin offerings but might shift focus away from their main product, USDe. Also, getting regulatory approval is a key factor to watch (YZi Labs).
3. Cross-Chain Expansion
Overview: Ethena wants to make USDe available on more Layer 2 blockchain networks like HyperEVM and TON. This helps increase the stablecoin’s liquidity (how easily it can be bought or sold) and usefulness. They’ve already started working with platforms like Pendle for yield pools and Morpho for lending markets.
What this means: This is promising for ENA if more users adopt USDe on these networks. However, Ethena faces competition from other stablecoins like those from MakerDAO and Aave. The success of this strategy depends on keeping USDe attractive for yield seekers (Pendle).
Conclusion
Ethena’s roadmap balances following regulations (with USDtb), innovating yield opportunities (through Ceffu), and growing its ecosystem (via cross-chain expansion). These efforts could strengthen USDe’s role as a stablecoin that earns yield, but challenges remain in execution and market acceptance of synthetic assets. The big question for 2026 is: Can ENA’s governance improvements and growing institutional interest keep it competitive amid rising challenges?
What updates are there in the ENA code base?
Ethena’s latest updates focus on improving secure asset management, expanding cross-chain earning opportunities, and introducing new ways for token holders to benefit from fees.
- Custody Yield Integration (Jan 12, 2026) – Enhanced security and yield options through a partnership with Ceffu.
- HyperEVM sUSDe Launch (Aug 7, 2025) – Fixed-yield pools on Pendle’s Layer 2 network.
- Fee Adjustment Preparation (Sep 15, 2025) – Proposal to share protocol fees with ENA token holders.
Deep Dive
1. Custody Yield with Ceffu (January 12, 2026)
What happened: Ethena teamed up with Ceffu (previously Binance Custody) to offer a new way for institutional investors to securely earn yield on their $ENA and $USDe holdings.
This means users can now stake their assets in highly secure custody accounts while still earning returns. The update includes smart contract improvements to ensure compliance and secure access to these yield vaults.
Why it matters: This move is positive for ENA because it connects large institutional investors with decentralized finance (DeFi) yield opportunities, which could increase demand for both USDe and ENA as tools for managing treasury funds. (Source)
2. sUSDe on HyperEVM (August 7, 2025)
What happened: Ethena launched sUSDe (staked USDe) on Pendle’s HyperEVM, a Layer 2 solution that allows users to earn fixed yields with up to 30x leverage through limited liquidity pools.
This required updates to support cross-chain transactions and optimize gas fees on Layer 2, along with Pendle’s system for turning yield into tradable tokens. The initial pools, capped at $100 million, quickly gained traction.
Why it matters: This is a neutral development for ENA. It broadens Ethena’s presence in the DeFi space by offering more ways to earn yield, but it also faces competition from other platforms offering similar services. Still, it strengthens Ethena’s position in multi-chain stablecoin liquidity. (Source)
3. Fee Switch Parameter Finalization (September 15, 2025)
What happened: The Ethena Foundation finalized plans to activate a “fee switch” that would allow ENA token holders to receive a portion of the protocol’s revenue, such as fees from USDe transactions.
Developers completed security audits on the smart contracts that handle fee distribution. A governance vote is upcoming to decide if the fee switch will be turned on, potentially redirecting 10–20% of protocol fees to ENA stakers.
Why it matters: If approved, this is a positive development for ENA holders because it links the success of the Ethena protocol directly to rewards for token holders, encouraging long-term investment. (Source)
Conclusion
Ethena’s recent updates focus on providing institutional-grade security, expanding cross-chain earning options, and creating new incentives for $ENA holders. While there are still risks related to technical implementation and community approval, these changes align with the growing trend in DeFi toward compliant, multi-chain stablecoins.
One key question remains: How will Ethena’s custody yield solutions affect the adoption of USDe compared to traditional centralized stablecoins?