Key Insights:
- Ethena’s USDe stablecoin supply increased 75% in a month, reaching $9.3 billion and overtaking FDUSD in market capitalization.
- Ethena’s protocol TVL climbed to $9.47 billion, making it the sixth-largest DeFi platform by total value locked.
- ENA’s daily trading volume surged to $1.1 billion as the price jumped 15%, driven by ecosystem growth and stablecoin demand.
The native token of synthetic dollar protocol Ethena, ENA, surged 15 percent in the past 24 hours. This price movement comes amid growing demand for Ethena’s USDe stablecoin, which has now become the third-largest stablecoin by market capitalization. On-chain data shows a 75 percent increase in USDe supply on Ethereum over the last month, pushing total circulation to $9.3 billion.
According to data from DeFiLlama, the significant supply growth has allowed USDe to surpass FDUSD in market value. The only stablecoins now ahead of USDe are Tether’s USDT and Circle’s USDC. The increase in supply reflects growing adoption across decentralized finance protocols, driven by rising yields and expanding use cases.
Ethena Protocol TVL and Trading Volume Rise Sharply
Ethena’s protocol is seeing rising interest in the DeFi space. Total value locked (TVL) in the protocol has surpassed $9.47 billion, pushing Ethena to the sixth spot in TVL rankings. Daily trading volume for ENA has also increased by 20 percent to $1.1 billion, indicating a strong trading interest and bullish sentiment in the market.
In July, the Ethena platform recorded inflows of $2.96 billion, a sharp rise from $47 million in June. Platform fee revenue also doubled to $36.5 million in the same period. This growth points to increasing protocol usage and stronger user engagement, contributing to the rising ENA price.
ENA Token Unlocks Create Volatility Concerns
Despite the positive momentum, the market is watching upcoming token unlocks closely. Around $101.87 million worth of ENA tokens are being unlocked this week. This development may bring additional volatility. Data from CryptoRank shows Ethena has the largest unlock event among crypto assets this week.
Crypto analyst Ali Martinez highlighted that 250 million ENA tokens have moved to exchanges over the past two weeks. Last week, investor Arthur Hayes sold 7.76 million ENA, valued at $4.62 million. These moves suggest some holders may seek to take profits after July’s 140 percent rally.
