After More Than a 10% SURGE, Will Ethena (ENA) PRICE Go Up To REACH $10?

Ethena (ENA) has seen a remarkable price increase of over 10% over the past 24 hours, driven by significant updates and developments shared by Ethena Labs. The cryptocurrency is currently trading at $0.76 at the time, with a market cap nearing $1.2 billion.

What is Ethena (ENA)?

Ethena is a synthetic dollar protocol built on Ethereum, offering a crypto-native solution that doesn't rely on traditional banking infrastructure. It also provides a globally accessible, dollar-denominated savings instrument known as the Internet Bond. In February 2024, Ethena Labs raised $14 million in a strategic funding round co-led by Dragonfly and Maelstrom, the family office of Arthur Hayes (founder of BitMEX).

What were Ethena Labs' New Major Announcements?

Ethena Labs announced on their social media platform, X, that recent changes have enhanced the staking rewards for their stablecoin, USDe. Staking USDe now yields twice the satoshis (sats) and offers an impressive 37% annual percentage yield (APY). Furthermore, users leveraging Gearbox can achieve up to 28 times sats and a staggering 145% APY.

With increased APY for sUSDe will the Yield increase?

On May 16, Ethena Labs disclosed that the sUSDe contract has been updated to ensure higher returns for staked USDe. Previously, a portion of the yield was retained by the protocol, but this has now been reduced to 20%, allowing the sUSDe contract to benefit more. As a result, the APY for sUSDe has reached 37.2%.

Currently, only 15% of USDe is staked in sUSDe. Ethena Labs suggests that if the entire protocol backing yields around 7%, transferring these returns to the staking contract could boost the effective sUSDe APY to 37%. With an average protocol return of 23% since its launch, the implied sUSDe yield could soar to approximately 125%, although this may decrease as more USDe is staked.

What is next for Ethena ENA?

1- Ethena Governance Committee 

From June, the Ethena Governance Committee will be operational, involving several leading risk management advisory firms. This committee will play a crucial role in deciding the ongoing retention of protocol returns. The current changes will remain in place until at least the end of June.

2- Upcoming Launch on Bybit

Ethena is set to launch on Bybit next week, allowing USDe to be used as collateral across the platform. This development is expected to further enhance the utility and adoption of Ethena's products.
 

With the upcoming launch and future plans ahead, Arthur Hayes has expressed his optimism for Ethena, predicting that ENA could reach a value of $10. This bullish outlook is backed by Ethena's innovative approach and recent funding success.