Ethena is a synthetic dollar protocol on the Ethereum blockchain that created a new type of stablecoin called USDe. Unlike traditional stablecoins like USDC or USDT, USDe is not pegged to fiat currency. Instead, it’s backed by crypto assets and short futures positions.

Ethena (ENA) was founded in 2023 by Guy Young, the CEO of Ethena Labs, the company behind Ethena. Young worked in the traditional financial sector across investment banking, hedge funds, and private equity firms, before delving into the world of crypto and blockchain technology.

• ENA token: ENA is the governance token of the Ethena ecosystem. It is an ERC-20 token that is also the governance token, meaning token holders can vote on Ethena’s project proposals. This boosts a community-driven approach to major decisions concerning the project and highlights the decentralized nature of the ecosystem. 

• Compound earnings: Compound earnings are a salient feature of the ENA token. This enables ENA token holders to increase their rewards significantly without putting in extra effort. 

• Multi-chain support: Ethena supports multiple blockchain networks, making its features and benefits available across different blockchain platforms.

• DeFi integration: Ethena is designed to integrate seamlessly with other DeFi protocols and platforms.

ENA is a relatively new crypto that was launched only in April 2024. Within a short time, the token managed to rank in the top 100 cryptos by market capitalization. In terms of ranking by trading volume, the token sits at the 77th slot, signaling investor interest in the token. However, like the broader crypto market that is on a downtrend, the ENA token is also down. As of July 12, it is trading at $0.38. However, as per technical analysis, the token is poised to surge to over $4 by 2030, making it a promising crypto.

Trade in ENA via CoinSwitch by downloading the app.

• ENA token can be used as a value of transaction within the Ethena ecosystem facilitating operations and interactions. It can also be traded, bought, or sold from a crypto exchange like any other crypto.  

• ENA token holders can also stake their ENA tokens to earn staking rewards. 

• ENA is given as a reward to participants in the Ethena ecosystem for liquidity provision or for contributing to the protocol.

• With a total supply of 15,000,000,000 tokens, 30% of the ENA token is reserved for ecosystem development, including funding new projects or grants for developers.

• ENA token holders can vote on Ethena’s project proposals, fostering a community-driven approach to major decisions concerning the project. 

• ENA token registered a massive growth in market cap to touch $1.3 billion. This positioned Ethena among the top cryptos and highlighted investors’ bullish attitude toward the token and its overall ecosystem. 

• Despite being a relatively new crypto, ENA is listed on several crypto exchanges like CoinSwitch.

• ENA being a new token is more susceptible to price fluctuations. 

• ENA’s success depends on mainstream adoption within the DeFi space.

• The overall stability of stablecoin in the broader crypto market could impact Ethena’s ecosystem and token value.

• To trade ENA on CoinSwitch, download the app. 

• You can start with just ₹100.

• CoinSwitch offers an easy-to-use platform suited for traders of all levels.

In July 2023, Ethena (ENA) raised $6.5 million from top firms like Dragonfly Capital, Deribit, OKX Ventures, Gemini, Bitmex, Huobi, Delphi Digital, and GSR. In addition, Ethena Labs, the innovative arm of Ethena, secured $14 million for its synthetic dollar project. Earlier in 2023, Binance Labs, Gemini, Bybit, Mirana Ventures, OKX Ventures, and Deribit contributed another $6 million. These investments show investor trust in Ethena’s growth and credibility.