The month of April started with two days of decline for the Bitcoin price, but it seems to have stabilized now around $66,000. Where will it go from here?
In the midst of quietness and some read numbers, Ethena Labs and the native token, $ENA, has had a fantastic run, increasing nearly 70% in price within the last 24 hours. As I initially started to write this article, the price was $0.96, but since I had to go to IKEA, I could only finish the article 4 hours later, and now the price is $1.20. That is a big price increase, and it clearly speaks of the hype currently surrounding Ethena Labs.
What is Ethena Labs, and what is ENA, and what is the hype all about?
The token ENA is the governance token of Ethena Labs. The owners of the token will have a word whenever big decisions are made related to the protocol. Now that isn't so interesting, but the interesting part about Ethena is the synthetic dollar named USDe which is the main "tool" of Ethena Labs.
USDe is a synthetic dollar protocol built on the Ethereum blockchain. Now, that is kind of Chinese to me... what does this really mean? Can someone please explain?
I have understood a few things, for example, that USDe has lots of Ethereum in its treasury, which gives a nice interest. Ethena also aims to add lots of Bitcoin to its treasury to serve as a backup and insurance to the USDe issued. It takes the yield from stakes Ethereum and use it to bring interest to the USDe holders.
"Ethena’s mission is to furnish the crypto ecosystem with a stable, censorship-resistant base money asset and a globally accessible savings instrument, addressing a critical gap in decentralised finance (DeFi) and the broader financial market."
Source: https://blog.bitfinex.com/education/what-is-ethena-labs-ena/
I am curious to see how Ethena will do, but the USDe is a very interesting coin and time will show if it is a better stablecoin than USDC, USDT, and the others.
What do you think?