Explore how Ethena unleashes the potential of USD and ENA

In the rapidly evolving world of cryptocurrencies, Ethena Crypto has emerged with its innovative decentralized finance (DeFi) protocol, attracting global investors’ attention with the synthetic dollar USDe and governance token ENA. Ethena not only provides a stable currency solution that does not rely on traditional banks but also offers users a global high-yield savings tool through ‘internet bonds’ sUSDe. This article will delve into Ethena’s unique mechanisms, investment potential, and how to participate in this exciting project.

What is Ethena Crypto?

Ethena is a synthetic USD protocol based on Ethereum, dedicated to providing stable, scalable, and censorship-resistant currency solutions for the crypto market. Its core products include:

1. USD (Synthetic USD):

Unlike traditional stablecoins like USDT or USDC, USDe is fully backed by encrypted assets such as Bitcoin, Ethereum, Solana, and their corresponding short positions. Ethena employs a delta hedging strategy using perpetual contracts and deliverable futures to ensure the stability of USDe. This mechanism eliminates the need for traditional banking infrastructure, providing reliable liquidity and stability for the DeFi and Web3 ecosystems.

2. sUSD (Internet Bond):

sUSDe is a yield-generating asset of Ethene, and users can earn high returns by staking USDe. sUSDe combines the native yield from Ethereum staking with financing and basis yield from the derivatives market, providing users with a globally accessible dollar savings tool. Market data shows that sUSDe’s annual percentage yield (APY) can reach 10-13% at certain times, far exceeding other stablecoin products.

3. ENA (Governance Token):

ENA is the governance token of the Ethena ecosystem, with a total supply of 15 billion. Users holding ENA can participate in key protocol decisions, such as risk management, asset allocation of USDs, and potential partnerships. ENA also incentivizes community participation through airdrops and staking rewards.

The core advantages of Ethena: why is it so popular?

Ethena stands out in the competitive DeFi market, winning the favor of investors and developers with the following advantages:

1. Independent of traditional finance

USD does not rely on traditional bank reserves, but is supported by blockchain technology and encrypted assets. This makes it a truly decentralized currency solution, especially suitable for regions with limited traditional financial infrastructure.

2. High returns and stability

Through the delta hedging strategy, Ethena is able to maintain a USD peg in market fluctuations, while providing sustainable high returns for sUSD users. Unlike Terra’s UST, USDe maintains its value through hedging derivative positions, even in Ethereum price Stable even during violent fluctuations.

3. Global Savings Tool

Ethena’s “internet bonds” sUSD provides a barrier-free dollar savings tool for global users. In emerging economies, users can directly use USDe for savings and payments through platforms such as Telegram, enjoying up to 10% APY.

4. Powerful ecological support

Ethena has secured support from well-known investment institutions such as Dragonfly, Franklin Templeton, and Arthur Hayes, with a total funding amount exceeding USD 100 million. In addition, its collaboration with the TON blockchain will introduce ENA to Telegram’s ecosystem of 1 billion users, significantly expanding its market influence.

Ethena’s market performance and investment potential

As of May 2025, USD has become the third largest USD-pegged asset in the crypto market, with a circulation scale only smaller than USDT and USDC. According to CoinMarketCap data, ENA is currently priced at around 0.4098 USD, with a 24-hour trading volume of 3.91 billion USD, ranking 46th in market capitalization.

Investment highlights of ENA token

• High growth potential: ENA’s fully diluted valuation (FDV) is $5.6 billion, and the market generally sees its expansion potential in the stablecoin field positively.
• Airdrops and Staking Rewards: Ethena once announced that 75 million ENA tokens (5% of the total supply) would be used for airdrops to attract a large number of users to participate in its ‘shard campaign’. Users who stake ENA can also receive ecological rewards and governance rights.
• Market sentiment: On platform X, investors are optimistic about the bullish prospects of Ethena, believing that it could become the core project of the next DeFi boom.

Ethena’s Future Outlook

Ethena Labs plans to launch its Layer-1 blockchain Converge in the second quarter of 2025, which is focused on
Real World Assets (RWA) And stablecoin’s EVM-compatible network. Converge will use USDe and USDtb as Gas tokens, and through collaboration with Securitize, connect traditional finance with DeFi.

In addition, the integration of Ethena with TON makes it the first DeFi protocol to offer stablecoins in the Telegram ecosystem. In the future, Ethena may achieve direct payment functionality through Apple Pay and TON debit cards, further promoting global adoption of USDe.

Conclusion

Ethena Crypto is reshaping the future of decentralized finance through innovative synthetic USD (USDe) and governance token ENA. With high-yield sUSDe, a global savings tool, and the upcoming Converge blockchain, Ethena aims to become a leader in the stablecoin market. However, investors should fully understand the risks and conduct independent research before participating.

Disclaimer: Cryptocurrency investment carries high risk, and market fluctuations may result in financial loss. Please conduct thorough research and carefully assess risk tolerance before investing.