Is the Hype Over for Ethena? ENA Price Falls 35% While This Fresh Bitcoin Venture Starts to Capture Market Interest

Publikováno: 24.4.2024

The governance token for synthetic dollar protocol Ethena (ENA) has shed 35% over the last fortnight to trade at $0.919 as of Wednesday, April 24, 2024. That makes for some of the heaviest losses for a top 100 cryptocurrency in the last fortnight. Losses look set to continue, too, as ENA shed about 9% in the […]

The post Is the Hype Over for Ethena? ENA Price Falls 35% While This Fresh Bitcoin Venture Starts to Capture Market Interest appeared first on Cryptonews.

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The governance token for synthetic dollar protocol Ethena (ENA) has shed 35% over the last fortnight to trade at $0.919 as of Wednesday, April 24, 2024.

That makes for some of the heaviest losses for a top 100 cryptocurrency in the last fortnight. Losses look set to continue, too, as ENA shed about 9% in the last 24 hours.

These figures reflect a token that’s having a rougher ride than market leaders Bitcoin (BTC) and Ethereum (ETH).

Bitcoin only declined by 3.4% over the fortnight. Ethereum fared worse, shedding about 7% over the fortnight, but both have appreciated a little bit in the last week.

Ethena, ENA and Synthetic Dollar Token USDe: A Primer

ENA is a governance token, which means its primary use is to grant holders voting rights on the future of Ethena’s synthetic dollar protocol.
The ecosystem’s main unique offering is USDe. USDe is a dollar-pegged stablecoin that is backed by a delta-hedging strategy that uses Bitcoin and Ethereum as reserves, while offsetting their volatility by holding perpetual futures shorting both assets.
One of the popular uses of USDe is staking. According to the official website, there is around $2.4 billion total value locked (TVL) on the platform between 163,810 users. The current annual yield is about 11.6%, according to the seven-day rolling average on Ethena’s homepage.
The prices began to tailspin last week, when a report by CryptoQuant warned USDe holders that Ethena’s keep rate (the portion of revenue allocated to its reserve fund) needs to stay above 32% in a bear market to avoid risks. 

ENA began trading on April 2 at around 79 cents and it rallied almost consistently over the next 9 days to set a high of $1.52 on April 11.

Today’s price represents a 39% pullback and there are signs that it could continue.

ENA is trading a little short of its 30-day moving average and its Relative Strength Index (RSI) is 35 and falling. Should it fall below 30, ENA will be oversold.

Source: TradingView

As ENA Hype Fizzles, Investors Try 99Bitcoins


The CryptoQuant report warning of a potential USDe de-pegging recalls the fate of the so-called algorithmic stablecoin UST.

Once one of the largest cryptocurrencies in the world, the dollar-pegged stablecoin slipped its peg in May 2022 when a bank run caused many to exit their positions too quickly, sending the algorithm into a hyper-inflationary tailspin that quickly drained billions from the ecosystem and send the industry into a year-long recession. 

In the post-mortem analysis, many highlighted that analysts had previously warned of the possibility of an exponentially catastrophic de-pegging. However, the early warnings had fallen on mostly deaf ears.

Crypto is a different field in 2024. Because of the heavy lessons learned over the last two years, there is arguably a greater awareness of potential problems than there ever has been.

Thanks to the cryptoverse’s lively community of journalists and influencers, retail investors are far more savvy than they’ve ever been on issues of security and protocol stability.

Still, it could be better. With USDe, for example, few understand the risks in spite of the fact that it is one of the fastest growing stablecoins.

So, everyone agrees on the fact that education is compulsory. That’s why a new protocol hopes to incentivize more people to learn about crypto through paying them crypto.

99Bitcoins is a heritage platform that brings with it a long-established community of 700,000 YouTube subscribers alongside 2 million registered users for its crypto courses. 

Through its revolutionary Learn-to-Earn model, 99Bitcoins uses a blend of gamification and a leaderboard reward system to make users feel like their learning is bearing spendable benefits.

Interested?

Visit the secure presale website today to Buy 99Bitcoins. 

The post Is the Hype Over for Ethena? ENA Price Falls 35% While This Fresh Bitcoin Venture Starts to Capture Market Interest appeared first on Cryptonews.

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