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Publication date: July 31, 2025
What is Ethena?
Ethena is a fast-growing crypto project that positions itself as an alternative monetary system on the Ethereum network. Unlike many other cryptos, Ethena is not solely focused on payments or smart contracts, but aims to provide a sustainable, decentralized solution for digital dollars. Central to this ecosystem are two tokens: the synthetic stablecoin USDe and the governance and ecosystem token $ENA.
Whereas USDe is intended to provide price stability, $ENA plays a completely different role. This token symbolizes ownership, decision-making and future value development of the Ethena platform. And that very $ENA token has caused much discussion and speculation within the crypto market in recent months. As such, $ENA represents the beating heart of decision-making and economic value within the Ethena network.
What are stablecoins?
Stablecoins are crypto coins that seek a stable value, usually pegged to the U.S. dollar. Examples include USDT and USDC. Ethena offers an alternative, synthetic variant with USDe. In this article, however, we focus on $ENA: the governance and value token above it.
The function of $ENA
The $ENA token was launched in April 2024 via Binance Launchpool and immediately attracted a lot of attention. The token performs multiple functions within the Ethena ecosystem:
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Governance: ENA holders may vote on the development and risk management of the protocol.
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Incentives: Users can receive rewards in $ENA for using USDe, such as staking or offering liquidity.
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Ownership representation: ENA acts as a proxy for the future value of the network, similar to how shares function for corporations.
These functions make $ENA more than a reward stake: it represents influence and potential within the ecosystem.
Recent developments
Since its launch, $ENA has remained constantly evolving, with new features, collaborations and strategic choices strengthening its foundation. Below we list the most important recent developments that may impact the future of both the token and the broader Ethena ecosystem:
- Introduction of Restaking Mechanism: Users can now restake their $ENA tokens for additional rewards in both $ENA and USDe, encouraging long-term engagement.
- Establishment of a Governance Council: Active ENA holders will have a say in key decisions within the Ethena protocol, including risk management and product development.
- Collaborations with DeFi platforms: $ENA is being integrated into new applications through partnerships with Frax, Pendle and Morpho, among others.
- Increase in use and adoption: More than 250,000 unique wallets have now interacted with $ENA, indicating growing interest from the market.
- Optimization of tokenomics: Reward structures and circulating offerings have been adjusted to reduce selling pressure and build scarcity.
These developments underscore Ethena's ambition to position $ENA not merely as a reward token, but as an essential part of a self-managing ecosystem.
Price development of $ENA
The chart below shows the price movementof Ethena (ENA) overthe past three months. A convincing upward trend has been visible since early July, with market sentiment clearly shifting in favor of buyers. After an extended phase of sideways movement, the price broke out powerfully from the support level around $0.49.
The price then managed to quickly advance towards the resistance zone around $0.70. Although this level holds up as a barrier for now, the recent price action shows that significant buying pressure is present. A convincing breakout above this resistance would pave the way to the next price target of $0.90, an important level within the current upward structure.
As long as the price remains above the previous support level and the upward momentum persists, the outlook remains positive. The chart shows a series of higher bottoms and returning buying interest on dips, indicating a healthy build-up. The coming weeks will be crucial: if Ethena succeeds in breaking through resistance, then further rise is obvious. If not, a fall back towards the support zone cannot be ruled out.
What could drive up the price of Ethena?
1. Growing USDe adoption: More users of USDe increase the importance of governance and thus the value of $ENA2 .
2. Attractive strike rewards: Higher returns for strikers can create scarcity in the market.
3. Integration into DeFi platforms: Entry into major protocols increases ENA's utility and value3.
What can Ethena work against?
1. Regulatory risks: Synthetic dollars such as USDe may come under fire from regulators, impacting $ENA.
2. Technical vulnerabilities: Bugs or exploits can undermine trust in the protocol.
3. Cooling hype: Without sustained adoption and use, the price pressure can quickly reverse.
Conclusion
$ENA is not a stablecoin, but an ecosystem token with a distinct role within the Ethena project. While USDe is trying to become a new digital dollar, $ENA is meant for steering, rewards and participation in the future success of this system.
For novice investors, it is important to clearly understand this distinction. Those who believe in the adoption of alternative stablecoins and the growth of DeFi might see $ENA as a long-term investment opportunity. But as with many governance tokens, the real benefit depends on the success of the underlying protocol. For now, the project is innovative and promising, but with associated risk.
Disclaimer: Investing involves risk. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts' own insights and experiences. They are therefore for educational purposes only.
