USDe circulating supply has shrunk by 70% since the October bull market peak, when it topped $14 billion.
Rising ENA on exchanges, bearish long-term trend, and rejection from $0.10 meant traders can brace themselves for another price leg southward.
Traders remain bullish even as large holders increase downside bets.
Ethena's bounce was part of a relief rally and not a recovery, and the bounce was already looking like it was reversing.
Ethena is positioning its synthetic dollar token USDe at the center of what it calls the next major contest in crypto: the fight to build scalable, reward-bearing ‘onchain dollars' that can function across DeFi, centralized exchanges, and eventually traditional finance. In an interview published in TokenPost's “TOKEN WATCH” series on Thursday ET, the team behind Ethena described USDe as a ‘crypto-native' alternative to conventional stablecoins—one that targets persistent market demand for U.S.
ENA rebounded from record lows, rising 14.01% over seven days while still falling 18.34% across the previous two-week period. The move was supported by a buyback-and-burn governance proposal, negative perpetual funding, higher volume, and a 12% increase in futures open interest. Traders are watching $0.
Ethena's USDe pays yield through a delta-neutral funding trade, sidestepping the GENIUS Act Section 4(a)(11) ban that forced Circle and Coinbase to restructure USDC.
Ethena's vault success highlights growing interest in DeFi yields, but regulatory scrutiny and risk management remain critical challenges. Ethena's USDe vault on Coinbase surpasses $100M in 4 days.
Coinbase has added a higher-risk USDC yield vault connected to Ethena, Morpho and Steakhouse Financial.
Ethena will allocate $250 million to Securitize's STAC tokenized fund, which invests in AAA-rated CLOs and operates on Solana. The fund currently manages $102 million in assets and records a 7-day APY of 2.42%, with a management fee of 0.30%.
The breach of $0.0765 confirmed the long-term bearish continuation, and the near-term ENA outlook remained downbeat as well.
Coinbase has added a high-yield USDC vault to its in-app DeFi lending offering. The product runs on Morpho infrastructure and uses vault allocations curated by Steakhouse Financial.