Ethena’s price has maintained stability over the past three days amidst ongoing efforts by developers to attract integrations with USDe.
ENA traded at $0.58 on Thursday, marking a 12.5% increase from its monthly low while still standing 48% below its peak.
Recent announcements by Ethena’s developers have highlighted several integrations, bolstering its stablecoin’s market presence. Notably, Ethena forged a partnership with Bitget, a major global crypto exchange, granting its 25 million users access to use USDe as margin collateral for coin-m margined perpetuals. Additionally, users can engage in fee-free spot trading on the USDe/USDT pair and earn returns in the designated section.
This week, Ethena also partnered with Symbiotic, a staking platform, enabling users to earn staking rewards by staking the ENA token in Mellow. Users can benefit from a 30x ENA multiplier, Symbiotic points, and potential future LayerZero allocations.
Moreover, Ethena integrated with AAVE, a prominent player in the Decentralized Finance (DeFi) space. This integration allows users to deposit USDe stablecoin and leverage their positions with other stablecoins on Aave. Furthermore, users can deposit stETH, weETH, ETH, and WBTC on Aave to borrow stablecoins in USDe.
Further integrations of USDe include collaborations with Bybit, BounceBit, and Blast, a leading layer-2 network. These expansions, coupled with attractive rewards, have propelled USDe to become the fourth-largest stablecoin in the industry, boasting a market cap of $3.6 billion and over 232k holders.
Investors favor USDe for its robust yield of approximately 8.6%, surpassing returns offered by US government bonds. However, concerns linger regarding the sustainability of this yield during periods of heightened market volatility. Analysts have drawn parallels to the fate of Terra Luna in 2022, which faced challenges despite initially strong yields, citing funding rate reversals and counterparty risks as potential pitfalls.
Despite the growth and integrations surrounding USDe, Ethena’s native ENA token has struggled, having lost nearly half of its value since its peak. This downturn mirrors broader trends among altcoins, many of which have entered bearish territory in recent weeks.
In the futures market, Ethena’s daily traded volume and open interest have seen declines following a peak in April.
Looking ahead, market bulls are optimistic about a potential reversal signaled by a small inverse head and shoulders (H&S) pattern on the hourly chart, a recognized bullish reversal pattern in technical analysis.