Ethena (ENA) Price Surges Due to Increased Staking Rewards

The governance token ENA of the decentralized stablecoin project Ethena has become one of the top performers today (08/04), driven by an increase in staking rewards.

Ethena (ENA) Price Surges Due to Increased Staking Rewards

The governance token ENA of the decentralized stablecoin project Ethena has become one of the top performers today (08/04), driven by an increase in staking rewards.

Chart of ENA/USDT on Binance at 09:30 PM on 08/04/2024

Starting from 08/04, ENA holders can participate in staking with a minimum period of 7 days. Those who lock ENA valued at more than 50% of their current USDe stablecoin balance will receive an additional 50% in rewards.

Today we introduce $ENA into Season 2 in order to more closely align the growth in USDe with $ENA. Users who lock $ENA at a minimum of 50% of their total USDe holdings per wallet will receive:

i) 50% increase in their rewards

ii) the highest number of rewards per day of any pool
Ethena Labs (@ethena_labs), April 8, 2024

Analytics firm Lookonchain has noted that at least 3 wallets have utilized 11.9 million ENA (worth 15.23 million USD) for staking.

Whales are withdrawing $ENA from exchanges and staking it due to the #Ethena Season 2 staking rewards.

3 whales withdrew 11.9M $ENA($15.23M) from #Binance and staked it.

Ethena previously declared that only circulating ENA tokens are allowed to participate in staking, excluding tokens awaiting vesting by the project team and investors.

The initial staking value is 200 million USD and will be gradually increased over time.

As introduced by Coin68, Ethena is a decentralized stablecoin model allowing users to lock ETH and liquid staking tokens of ETH to issue the stablecoin USDe. To mitigate depeg risks, the project establishes short ETH positions on major CEXs to form a delta-hedging strategy, while paying ETH staking yields and futures funding rates to USDe holders. At the time of writing, USDe's APY is 37.1%.

Last week, Ethena conducted an airdrop of the ENA governance token and announced the acceptance of BTC as collateral for USDe. Within just 7 days, the project reported securing over half a billion USD in Bitcoin and establishing short positions for BTC on CEXs.

Ethena aims to increase USDe's market cap from its current 2.1 billion USD to 5 billion USD by September 2024 by incorporating BTC as collateral.

Statistics of collateral ratios on Ethena as of the evening of 08/04/2024.