Ethena’s ENA token surged by 550% over the past five months, indicating strong market interest. The total supply of its USDe has grown to 5.8 billion, positioning Ethena in the top 10 DeFi platforms by total value locked. Its unique delta hedging strategy helps maintain a dollar peg.
Despite its growth, Ethena faces challenges in maintaining high annual percentage yield (APY) rates. The platform’s success also hinges on effectively balancing returns between USDe and ENA holders, particularly as it carves out a niche in the competitive stablecoin market.