Ethena is a stable Ethereum-based protocol whose synthetic dollar USDE will open today its first major local token unlock, namely, ena at $2.07 billion.
What is ethena ($ena)?
Ethena ($ENA) is a decentralized StableCoin protocol powered by Ethereum derivatives that provides a secure and scalable solution through its synthetic USD USDE. Ethena aims to create reliable alternatives for USDT and USDCs (such as USDT and USDCs) that depend heavily on banks or other real-world financial institutions.
In a short period of time, USDE’s market value soared to $6 billion, surpassing Dai and becoming the third largest stable (Source: Cointelegraph). Some key factors have driven the rapid growth of Ethena:
- Rather than relying on bonds, Ethena uses Steth and BTC to integrate USDE to open up to a short-term stance in the future. Meanwhile, USDE maintains 1:1 nails through Delta Hedging. Delta hedging is a technology used to generate revenue in a lateral market. In short, delta hedging ensures that traders’ positions remain stable despite market changes. When applied to crypto markets, the most common approach involves balancing portfolios to maintain a net zero positioneffectively acts as a hedge. This allows investors to make profits through alternative methods such as IDO, AIRDROP, Staking, Farling, etc. while reducing risks.
- Successfully raised $100 million In fundraising activities by major investment funds including Franklin Templeton, F-Prime Capital, Dragonfly Capital, Polychain Capital and Pantera Capital to help Ethena expand its adoption of its stable USDE.
As a result, Ethena’s governance token, $ENA, will take a short time to increase its market capitalization from $400 million to $1.5 billion. Ethena operates through decentralized autonomous organizations (DAOs), and the community makes key decisions. ENA token holders can vote to improve the system, adjust parameters and introduce new features. This governance model keeps projects transparent and aligned with community interests, ensuring constant innovation and adaptation.
Today, March 5, a major ENA token unlocking is happening. Ethena will release 20.7 billion ENA tokens, accounting for 39% of the revolving supply, worth more than $765 million. The event represents the first major unlock for core contributors and investors, marking a critical moment for the project’s supply expansion and market allocation.
Source: Symbolists
The unlocked token will be assigned as follows:
- Core Contributors – 1.13 billion ENA (valued at US$471 million)
- Investors – 937.5 million ENA (valued at $392 million)
- Ecosystem Development – 7.93 million ENA (valued at $3.32 million)
This unlocking will increase liquidity, reshape the token distribution, and may have a significant impact on market dynamics. As supply expands, everyone will be concerned about the market’s response to this major event.
However, this event could put pressure on price drops due to increased supply from suppliers and investors and potential sell-offs. To prevent sudden price drops, investors should monitor market demand, news and community sentiment. In addition, risk management strategies (such as stop loss and position size) must be used. The activity may offer long-term buying opportunities but has short-term volatility risks.
