Why did the price of ENA fall?
Ethena (ENA) dropped 6.34% in the last 24 hours, adding to a 10% decline over the past week. Here’s why:
- Technical Breakdown: The price fell below a key support level at $0.207, triggering automatic sell orders.
- Market-Wide Pullback: The overall cryptocurrency market value dropped 2.03%, making ENA’s fall worse.
- Declining Fundamentals: The total value locked (TVL) in Ethena’s platform has dropped 55% since its October peak, hurting investor confidence.
1. Technical Breakdown (Negative Impact)
What happened: ENA’s price slipped below an important support point at $0.207, which is based on a common technical analysis tool called Fibonacci retracement. This caused many stop-loss orders—automatic sell triggers—to activate, pushing the price down faster. The Relative Strength Index (RSI) is at 40.67, indicating the coin is oversold but hasn’t yet shown signs of recovery.
Why it matters: Breaking this support level changes how traders feel about ENA, encouraging short-term sellers to expect further price drops. The Moving Average Convergence Divergence (MACD) indicator also shows weakening buying interest.
What to watch: If ENA’s price can rise back above $0.207, it could reverse this negative trend. Otherwise, it might fall further toward the recent low of $0.192.
2. Market-Wide Pullback (Negative Impact)
What happened: The total value of all cryptocurrencies fell by 2.03% in 24 hours, with major coins like Bitcoin and Ethereum also declining. ENA’s drop was steeper than the average, indicating it’s facing extra selling pressure.
Why it matters: Smaller coins like ENA often lose more value during broad market sell-offs as investors move money into safer assets. The Fear & Greed Index, which measures market sentiment, is at a neutral 49, showing cautious investor mood and limited optimism.
3. Declining TVL and Investor Confidence (Negative Impact)
What happened: Ethena’s Total Value Locked (TVL)—a measure of how much money is invested in its platform—has fallen 55% from $14.98 billion in October 2025 to $6.63 billion now (DeFiLlama, via BecauseBitcoin). This suggests fewer users and less attractive returns.
Why it matters: A lower TVL signals weakening health of the platform, which can reduce investor trust and lead to more selling.
Conclusion
ENA’s recent price drop is due to a mix of technical selling, overall market weakness, and ongoing concerns about the platform’s declining activity.
Key point to watch: Will ENA bounce back above $0.207 to stop the downward trend?
What is expected in the development of ENA?
Ethena’s roadmap is focused on growing the use of USDe stablecoin and increasing the usefulness of ENA tokens through these key steps:
- Restaking Expansion (Ongoing) – Strengthening ENA’s role in securing cross-chain transactions.
- Ethena Chain Launch (2026) – Creating a new blockchain dedicated to decentralized finance (DeFi) apps.
- USDe Integrations (Ongoing) – Expanding where and how USDe can be used across different platforms.
In-Depth Look
1. Restaking Expansion (Ongoing)
What it is: Ethena allows users to stake their ENA tokens and sUSDe (a synthetic version of USDe) to help secure transfers of USDe across different blockchains using LayerZero’s DVN network. This setup helps keep USDe transfers safe and rewards users who stake with bonuses like Ethena multipliers, Symbiotic points, and possible airdrops. The plan is to expand this system to also secure oracle networks and data services. Source: Ethena Labs
Why it matters: This is positive for ENA because it creates more reasons for people to hold and stake ENA, which can reduce selling pressure. However, the success depends on how widely LayerZero is adopted and the risks involved if stakers lose their tokens due to penalties (slashing).
2. Ethena Chain Launch (2026)
What it is: Ethena plans to launch its own blockchain where USDe will be the native gas token (used to pay transaction fees). This blockchain will support DeFi applications like decentralized exchanges (DEXs), lending platforms, and complex financial products. The security of the chain will rely on restaked ENA tokens. The goal is to make USDe a central asset for on-chain financial activities. Source: Ethena Labs
Why it matters: This could greatly increase the usefulness and adoption of ENA by tying its value to the activity on the new blockchain. However, there are risks like technical challenges and competition from other well-established blockchains.
3. USDe Integrations (Ongoing)
What it is: Ethena is working to expand USDe’s use by partnering with companies like Anchorage Digital, which offers USDtb (a compliant stablecoin), and integrating with platforms such as Pendle and Hyperliquid. These partnerships aim to attract both crypto users and institutional investors by offering ways to earn yield (interest) on USDe. Sources: Pendle, Anchorage
Why it matters: More use of USDe means more value flows back to the Ethena protocol and the ENA token. On the downside, regulatory challenges around synthetic assets and the ability to maintain yields during market ups and downs could pose risks.
Conclusion
Ethena’s roadmap focuses on building a stronger ecosystem through restaking, launching its own blockchain, and expanding USDe’s use cases. These steps are important for increasing ENA’s value and utility in a competitive market. The big question remains: how will USDe adoption and its yield-earning potential hold up during changing market conditions?
What updates are there in the ENA code base?
Ethena is improving its platform by adding new features that increase how useful and secure it is. These updates include ways to restake tokens and upgrade the system’s protocols.
- Generalized Restaking Launch (June 26, 2025) – Users can now stake ENA tokens to help secure cross-chain transfers using LayerZero technology.
- Custody Yield Upgrade (January 12, 2026) – Partnered with Ceffu to offer better yield (earnings) on USDe tokens held in custody.
- Token Lock Enforcement (June 17, 2025) – Requires users claiming unvested ENA tokens from airdrops to lock up 50% of those tokens.
Deep Dive
1. Generalized Restaking Launch (June 26, 2025)
What happened: Ethena introduced a way for users to stake their ENA and sUSDe tokens in special pools called Symbiotic pools. This helps secure USDe transfers across different blockchains using LayerZero’s DVN network.
By staking ENA, users provide economic security for these cross-chain transactions and earn rewards from Ethena (with a 30x multiplier), Symbiotic, and Mellow points. This system reduces the need to rely on inflationary token rewards by using sUSDe’s ability to generate yield.
Why it matters: This is good news for ENA holders because it connects the token’s use directly to the security of the network. It encourages people to hold ENA longer and helps USDe expand across multiple blockchains.
(Source)
2. Custody Yield Upgrade (January 12, 2026)
What happened: Ethena teamed up with Ceffu (previously Binance Custody) to improve how USDe tokens held in custody can earn yield.
This upgrade uses institutional-grade custody services, allowing USDe collateral to earn yield while keeping its value stable (delta-neutral). It addresses concerns about risks from centralized custody and makes better use of capital.
Why it matters: This is somewhat positive for ENA because safer and better yield options could attract more institutional investors to USDe. However, its success depends on ongoing demand for synthetic dollars like USDe.
(Source)
3. Token Lock Enforcement (June 17, 2025)
What happened: Ethena now requires users who claim unvested ENA tokens from Season 1 airdrops to lock up at least 50% of those tokens.
If users don’t lock their tokens through Ethena, Pendle, or Symbiotic, their unvested tokens are redistributed to those who comply. This helps reduce short-term selling and aligns incentives with the long-term growth of the protocol.
Why it matters: This is positive for ENA because it reduces selling pressure and keeps tokens in the hands of committed users.
(Source)
Conclusion
Ethena is focusing on updates that increase the usefulness and security of its platform—from protecting cross-chain transactions to encouraging long-term commitment from users. While there are still technical risks with restaking and custody, these improvements strengthen ENA’s role as a key governance and security token. The big question is whether Ethena’s 2026 plans will help it become the leading synthetic dollar in decentralized finance (DeFi).