Ethena’s investors purchased its native token, ENA, at $0.40, causing its price to spike to $1.30 in mid-December. However, market fluctuations have since pushed ENA down to $0.41, marking a 51.48% loss in the past one month.
By Chimamanda U. Martha
Edited by Marco T. Lanz
Updated
3 mins read
While the cryptocurrency industry continues to grapple with major hacks and exploits, prominent venture capital companies and other financial institutions continue to pump funds into the economy. According to a Bloomberg report on Monday, Ethena ENA $0.28 24h volatility: 2.2% Market cap: $1.57 B Vol. 24h: $81.58 M , a decentralized stablecoin protocol offering a synthetic dollar for Web3 users, secured $100 million in funding from these companies.
The investment round, which concluded in December 2024 but was kept under wraps until now, saw participation from major heavyweights like Dragonfly Capital Partners, Polychain Capital LP and Pantera Capital Management LP. Additionally, asset management giants like Franklin Templeton and F-Prime Capital, the investment unit associated with Fidelity Investments, joined the round.
Citing a source familiar with the matter, Bloomberg reported that Ethena raised the funds through a private sale of its native token ENA. These investors purchased the digital asset at the price of $0.4. Buoyed by the news of the sale,
News of the sale briefly boosted ENA’s market price to $1.30 in mid-December. However, since January, the token has declined to $0.41, marking a 51.48% drop, according to CoinMarketCap data.
The $100 million fundraising support the development and launch of a new token specifically designed for traditional financial institutions. According to Bloomberg, the upcoming token will share similar characteristics with the protocol’s existing offerings, including its flagship stablecoin dubbed USDe.
The digital asset which is promoted as a “synthetic dollar” is designed to offer holders a 9% yield. Unlike other stablecoins in the industry, USDe’s reserve is made up of other stablecoins like Tether USD (USDT) and Circle’s (USDC).
Although Ethena did not disclose details of the upcoming token, the platform disclosed in December that it’s preparing to launch iUSDe, another digital asset targeting financial institutions looking for regulated stablecoins.
At the time, the protocol’s founder, Guy Young, explained that the digital asset dubbed iUSDe will include certain transfer restrictions to ensure compliance and facilitate adoption by traditional finance firms.
Young emphasized that Ethena’s top priority for the first quarter is forging partnerships with financial distributors, allowing their clients to integrate iUSDe into their systems. According to Young, the new token will offer a seamless bridge for traditional finance to enter the world of digital assets without direct exposure to crypto infrastructure.
Beyond its token expansion plans, Ethena has also formed a strategic alliance with World Liberty Financial (WFLI), a decentralized finance (DeFi) project backed by President Donald Trump and his family.
The partnership aims to integrate Ethena’s sUSDe, a staked version of its USDe stablecoin, with World Liberty Financial’s Aave instance. This integration will allow users to deposit USDe and earn rewards in both sUSDe and World Liberty’s native WLF token.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.
