cyrpto ahead, crypto, defies, downturn, Ethena, institutional, launch, market, price, stablecoin Mark February 25, 2025 0 Comments

Ethena price defies crypto market downturn ahead of institutional stablecoin launch

Ethena’s price has remarkable resilience in the middle of the wider cryptography blood, most Altcoins displaying losses of 8 to 20% in the past 24 hours.

Currently negotiating at $ 0.40, Ethena (This one) The price has only decreased by 3% over the daily delay, with a negotiation volume of 108%. The key factor in the resilience of Ethena prices could be the recent successful fundraising effort of the project, which obtained $ 100 million for the launch of Iusde, the new token with an institutional dollar in Ethena. This fundraising round was completed in December, but had not been disclosed before, according to Bloomberg. He attracted several major investors, including Franklin TempletonF-Prime Capital, Dragonfly Capital Partners, Polychain Capital LP and Pantera Capital Management LP.

The new token, Iusde, is essentially a regulated version of the existing synthetic dollar of Ethena, specially designed for traditional financial institutions that seek an exposure to the crypto without investing directly in digital assets, according to the January blog article by Guy Young, Labs Ethena founder.

In addition, the company plans to allocate part of the product of tokens to finance the development of its own blockchain, a source close to the question said Bloomberg.

Another probable factor contributing to the resilience of ENA prices is the high demand for ethanne of the existing stablecoin of Ethena (TO USE). With its market capitalization nearly $ 6 billion, the USDE has become one of the main synthetic dollars of the cryptography ecosystem thanks to its ability to generate substantial yield thanks to basic commercial strategies, even in the middle of increased market volatility. While the USDE gives once sharp At 60%, they have since stabilized around 9%, which always offers convincing return compared to traditional financial instruments.

Ethena Price defies the slowdown in the crypto market before the launch of the institutional stable - 1 — Source: Co Ringecko

From a technical point of view, the merchant Alejandrobtc has expressed Optimism on the trajectory of ENA prices. He noted that the asset is currently in a familiar accumulation range, which had previously led to an increase of 300% to $ 1.25 in December 2024 after consolidating between August and November. If history is repeated, Ena could see another massive rally.

However, it is important to note that the long -term sustainability of Ethena is uncertain. Indeed, Ethena generates the performance by using the basic commercial strategy, which has taken advantage of price differences between the Spot and Ultimately markets. Consequently, its performance strongly depends on market conditions. When the financing rates are high, the strategy can produce a high performance, which stimulates demand for Ethena’s assets, including ENA. However, in a lowering market With lower financing rates, this strategy can be tested.