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Fall from Grace. The token of synthetic dollar stablecoin issuer Ethena underwent an impressive post-launch surge, but once the initial rally petered out, ENA found itself caught in a perpetual downtrend! Why has ENA continued to plunge, and what moves is the team making to bolster adoption of its stablecoin?
ENA achieved all-time highs in both dollar and BTC-denominated terms on April 11, a mere two days before USDe reached peak supply and broader risk markets took a turn for the worse, seemingly plunging on concerns of elevated conflict in the Middle East.
While funding rates on the BTC and ETH perpetual swaps (the predominant source of Ethena’s revenue) cooled significantly coming into April, speculation over the impending second wave of ENA airdrop rewards fueled demand for Ethena assets and allowed yields to remain elevated.
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