e is showcasing remarkable resilience amid the wider crypto market bloodbath, with most altcoins posting losses in the 8 – 20% range in the last 24 hours.
Amidst a broader crypto market sell-off, with most altcoins logging losses in the 8 – 20% range over the last 24 hours, Ethena’s price has shown surprising resilience.
At the time of writing, Ethena (ENA) price has declined by just 3% over the daily timeframe, despite the broader market bloodbath, as trading volume has surged by 108%. A key factor behind this resilience could be the project’s recent successful fundraising effort, which reportedly secured $100 million for the launch of iUSDe, Ethena’s new institutional-focused dollar-pegged token. This fundraising round was completed in December, but had not been previously disclosed, according to Bloomberg. It saw participation from several major investors, including Franklin Templeton, F-Prime Capital, Dragonfly Capital Partners, Polychain Capital LP, and Pantera Capital Management LP.
The new token, iUSDe, is a regulated version of Ethena’s existing synthetic dollar, designed specifically for traditional financial institutions looking to gain exposure to crypto without directly investing in digital assets, according to a January blog post by Guy Young, founder of Ethena Labs.
Furthermore, the company is planning to use a portion of the proceeds from the token sale to fund the development of its own blockchain, a source familiar with the matter told Bloomberg.
Another factor that could be contributing to ENA’s price resilience is the strong demand for Ethena’s existing stablecoin, Ethena (USDe). With a market capitalization of nearly $6 billion, USDe has become one of the leading synthetic dollars in the crypto ecosystem, thanks to its ability to generate high yields through basis trade strategies, even in volatile markets. While USDe yields once peaked at 60%, they have since stabilized at around 9%, which is still a strong yield compared to traditional financial instruments.
From a technical perspective, trader AlejandroBTC is bullish on ENA’s price trajectory, noting that the asset is currently within a familiar accumulation zone, which previously preceded a 300% rally to $1.25 in December 2024 after consolidating between August and November. If history repeats itself, we could see another الكبير rally from ENA.
$ENA a good buy in this area for accumulation, better to stack and forget it imo. pic.twitter.com/n5OvlhA2Yj
However, it’s important to note that Ethena’s long-term sustainability is up for debate, considering that it generates yield using the basis trade strategy, which exploits the price difference between the spot and futures markets. As such, its performance is largely dependent on market conditions. In a bull market with high funding rates, this strategy can produce astronomical yields, driving up demand for Ethena’s assets, like ENA. But in a bear market with lower funding rates, this strategy will be put to the test.
