Should You Buy Ethena in 2025?

Ethena at a glance

How much does 1 Ethena cost?

The price of Ethena is climbing this week. At £0.53, Ethena is up 2.4% in the last 24 hours and has surged 9.1% over the past seven days. With a market capitalisation of £816.6 million, Ethena currently ranks 75th among all cryptocurrencies, while its average three-month trading volume stands at £131.4 million. The supply in circulation totals 1.54 billion ENA, representing 0.09% of the entire crypto market. Ethena’s price movement highlights its growing traction and the volatility that can provide new opportunities for investors in the UK.

Our complete opinion on the crypto Ethena

Have recent shifts in the crypto landscape prompted investors to reassess the prospects of Ethena? After an in-depth review of the latest Ethena price action over three years—leveraging on-chain metrics, technical indicators, and proprietary algorithms—we have identified evolving trends that may signal renewed momentum. By integrating cross-source analytics—market signals, sector dynamics, and competitive benchmarking—we now turn to a pivotal question: Why might Ethena be poised to re-emerge as a strategic entry point in the stablecoin and synthetic yield sector in 2025?

Recent Performance & Market Context

Price Evolution

Since its highly anticipated launch, Ethena (ENA) has demonstrated notable resilience in a volatile market. Starting 2024 trading just above $0.60, ENA rapidly appreciated—peaking above $1.50 during the spring DeFi surge. Despite macro-driven corrections that affected the broader crypto sector, ENA established a higher low near $0.90, reflecting robust underlying demand and active price discovery, notably outperforming many Layer 1 and DeFi peers during periods of sector pullback.

Positive Developments

• Launch of the USDe Stablecoin: Ethena’s synthetic dollar (USDe) saw meteoric growth, surpassing $3.5B in TVL by early summer 2024, cementing ENA’s foundational role in the synthetic stablecoin space.
• Rapid Ecosystem Expansion: Integration with leading DeFi protocols (Uniswap, Curve, Aave) expanded ENA utility, while CEX listings (Binance, Coinbase) enhanced global liquidity access.
• Community Growth: User base expansion (>700,000 wallets) and an active governance community have anchored ENA’s growth trajectory.

Favourable Macro and Sector Backdrop

In 2024, tailwinds for synthetic assets and yield tokenisation are evident. The persistent search for on-chain dollar yields amid traditional finance uncertainty, combined with rising capital inflows into decentralised stablecoins, align strongly with Ethena's core proposition. Regulatory dialogue around synthetic assets, particularly in the UK and EU, has evolved towards risk-based frameworks, providing clearer pathways for scalable adoption.

Technical Analysis

Relevant Crypto Indicators

• RSI (Relative Strength Index): As of Q2 2024, ENA shows an RSI stabilised near 57—indicative of consolidation but far from overbought, suggesting potential upside headroom.
• MACD (Moving Average Convergence Divergence): MACD signals a bullish crossover on the daily chart (mid-June 2024), supported by positive histogram momentum—often preceding extended upward legs.
• Moving Averages: 50-day SMA is trending above the 200-day SMA, confirming a sustained bullish structure; price pullbacks have found support at the 100-day SMA.

Key Support Levels & Reversal Signals

• Primary Support: $0.90—validated on multiple retests since May 2024, providing a robust buy zone.
• Upside Resistances: $1.50 (recent peak) and psychological $2.00 mark.
• Formation: A broadening wedge, with contracting volatility, hints toward a potential volatility breakout in H2 2024.

Momentum & Short/Mid-Term Structure

Momentum remains constructive: strong buying interest on dips, consistent volume on recovery rallies, and on-chain data pointing to accumulation by strategic wallets all support a thesis of underlying bullish intent.

Fundamental Analysis

Growing Adoption and Strategic Partnerships

Ethena’s flagship product—USDe—has become the fastest-growing synthetic stablecoin, now integrated natively on leading DeFi protocols and adopted as collateral for innovative derivatives. Institutional DeFi participants and market makers have begun orchestrating structured products leveraging USDe yields, attesting to early-phase composability.

• Active Partnerships: Collaborations with Avalanche, Polygon, and Lido have unlocked cross-chain functionality, expanding market reach.
• Developer Activity: ENA is consistently within the top 10 most active GitHub repos among stablecoin projects, highlighting rapid iteration and ecosystem maturity.

Attractive Valuation

• Market Capitalisation: At ~$1.59B (June 2024), Ethena sits within the top 50 projects—below synthetic stablecoin peers relative to TVL and user base metrics.
• Fully Diluted Valuation (FDV): $7.2B—reflects tangible upside if adoption outpaces emissions schedules.
• TVL: Over $3.5B locked across protocols—demonstrative of rapid, sticky adoption.
• TVL/Market Cap Ratio: 2.20—substantially higher than established peers (e.g., FRAX, DAI), often interpreted as undervaluation relative to fundamental traction.

Structural Strengths

• Technological Innovation: Ethena pioneered a hybrid collateral and delta-neutral hedging system, reducing systemic risk and operational costs compared to competitors (e.g., algorithmic or overcollateralised models).
• Community Dynamism: ENA’s governance attracts informed participants, ensuring alignment of incentives and protocol upgrades.
• Market Differentiation: By focusing on both stable synthetic assets and ETH yield strategies, Ethena addresses unique demand vectors in DeFi.

Volume & Liquidity

Daily volumes remain elevated ($170M+ average in Q2 2024), second only to major stablecoin protocols. Deep order books on CEXs and robust DEX pools guarantee efficient execution for institutional players and retail alike.

• Market Dominance: ENA commands >7% of the synthetic stablecoin market, a leader in its sector as measured by TVL and on-chain footprint.

Catalysts & Positive Outlook

Several forward-looking drivers could propel ENA to further leadership:

• Protocol Upgrades: The eagerly anticipated “Ethena v2” (expected Q1 2025) will introduce modular plug-ins, enhanced governance, and cross-chain stability measures.
• DeFi/NFT Synergies: Integrations across NFT collateral markets and permissionless lending pools could unlock massive new collateral and utility use cases.
• Regulatory Evolution: If the UK and EU continue to clarify guidelines for synthetic stablecoins, ENA could be among the first to benefit, accelerating institutional adoption.
• Additional Integrations: Forthcoming listings on additional global CEXs and wallet apps will further strengthen liquidity and user accessibility.

Investment Approaches

Short-Term Positioning

• Momentum Trades: Current market structure and positive technicals suggest attractive entries on pullbacks to the $0.90–$1.10 support range.
• Catalyst Anticipation: Tactical positions ahead of major upgrades (e.g., Ethena v2 in Q1 2025) could capture event-driven upside.

Medium-Term Perspective

• Yield Farming and Staking: Participation in Ethena’s innovative native yield protocols provides competitive, sustainable returns.
• Layered Portfolio Inclusion: ENA offers correlation diversification, especially for those overexposed to Layer 1 governance tokens.

Long-Term Conviction

• Structural Hold: Given Ethena’s rapid market share expansion, growing ecosystem composability, and innovation pipeline, the rationale for strategic, multi-year holding is convincing.
• Relative Value: Compared to market cap/TVL peers, ENA presents an asymmetric risk/reward for investors seeking DeFi infrastructure bets.

Is Now the Right Time to Consider Ethena?

Summary of Strengths:

• Unprecedented USDe adoption and protocol TVL growth, outpacing key competitors.
• Robust technical structure suggesting imminent momentum, validated by both macro and micro indicators.
• Fundamental metrics (market cap/TVL, volume, ecosystem engagement) point to undervaluation.
• Pipeline of high-impact catalysts: Ethena v2 upgrade, new integrations, and regulatory clarity.

Optimistic Projection & Strategic Outlook

Given these convergent strengths and forward-facing catalysts, Ethena seems to represent an excellent opportunity for those seeking exposure to high-potential synthetic assets and next-generation stablecoin innovation. With both technical and fundamental frameworks supporting continued expansion, Ethena could well initiate a new bullish phase, evidenced by its resilience and capacity for rapid market share capture. Investors attuned to the evolution of DeFi and tokenised yield products may find the current environment highly compelling for a strategic allocation.

Ethena remains a high-volatility digital asset with remarkable prospects for dynamic investment, best approached through diligent risk management policies. The decisive nature of its recent price action underscores Ethena's unique value creation potential, while an adaptive macro environment and imminent protocol developments further reinforce its bullish prospects. Levels to monitor: $0.90 as immediate support, $1.50 as the next key resistance. The upcoming v2 protocol upgrade in Q1 2025 is poised to become a major inflection point for Ethena’s trajectory.

How to buy Ethena?

Buying Ethena (ENA) cryptocurrency online is simple and secure, especially when you use a regulated platform. There are two main ways to gain exposure: straightforward spot purchase (meaning you actually own the coins), or through crypto CFDs (Contracts for Difference), where you speculate on price movements without owning the asset. Each method has its own costs, risks, and advantages, tailored to different investor profiles. Below you’ll find clear explanations of both options—plus, further down this page, you’ll find a side-by-side platform comparison to help you choose what’s right for you.

Spot Purchase

Spot purchasing Ethena means you’re buying the actual ENA coins, which are then held in your digital wallet. This is a direct approach: you pay the current market price and become the real owner of the cryptos. Fees are usually a fixed percentage per transaction—typically around 0.5% to 1.5%—plus a small flat fee, deducted in GBP.

Example

Example: Suppose Ethena is priced at £0.80 per coin. Investing £1,000 (around £995 after a £5 transaction fee) lets you buy roughly 1,243 ENA coins.
Gain Scenario: If the value of Ethena rises by 10%, your ENA holdings are now worth £1,100.
Result: A £100 gross gain, or +10% on your initial investment.

Trading via CFD

Trading Ethena via CFDs means you don’t own the actual cryptocurrency. Instead, you enter into a contract to benefit from the rise (or fall) in Ethena’s price. This method allows you to use leverage, potentially increasing profits—but also increasing risks. With CFDs, costs typically include the spread (gap between buy and sell price) and overnight financing fees if you keep your positions open.

Example

Example: You open a CFD position on Ethena with £1,000 and use 5x leverage, gaining a market exposure of £5,000.
Gain Scenario: If Ethena’s price climbs by 8%, your position earns 8% × 5 = 40%.
Result: That’s a £400 gain, on a £1,000 invested (excluding fees).

Final Advice

Before investing, always compare the fees, spreads, and conditions offered by different platforms, as these can significantly impact your potential returns. The choice between spot and CFD trading depends on your investment goals and level of experience. For a detailed comparison of platforms offering Ethena, please refer to the table found lower on this page. Invest smartly and choose the method that fits your profile.

Our 7 tips for buying Ethena

The latest news about Ethena

Ethena (ENA) was officially added to Binance UK’s asset listing on June 6, boosting its local visibility. This inclusion provides Ethena with significantly enhanced liquidity for UK investors and broadens access to staking, trading, and liquidity-providing products using sterling. The move signals recognition from Binance’s UK arm, which operates under the Financial Conduct Authority’s (FCA) Temporary Registration Regime, and is likely to foster further institutional attention to ENA within the British market.

Ethena’s native USDe stablecoin remains fully compliant with updated UK stablecoin guidance released by the FCA last week. The FCA’s revised framework, which emphasises transparency in reserves, robust collateralisation, and operational resilience, plays directly to USDe’s current reserve architecture. Industry experts, including London-based crypto compliance firm Elliptic, have highlighted Ethena’s model as a strong example of transparent reporting and proactive adaptation to regulatory expectations.

London-based digital asset manager CoinShares confirmed adding ENA to its list of monitored crypto assets, reflecting growing institutional interest in the protocol. CoinShares’ latest research memo, published June 5, identifies Ethena as a potential diversifier in multi-asset digital portfolios, citing its innovative yield-generation mechanism and growing adoption as key drivers. The memo also notes heightened trading volumes for ENA on UK-facing platforms since late May, underlining increased engagement from professional and retail investors alike.

Ethena has established a research partnership this week with University College London for cryptographic security audits and DeFi risk monitoring. The collaboration aims to leverage UCL’s academic expertise to further strengthen Ethena’s smart contract architecture and to anticipate potential regulatory or technical challenges. This partnership is highly regarded by UK DeFi communities, suggesting positive momentum for Ethena amongst both technical analysts and policy observers.

New data from UK-based market intelligence firm CryptoCompare has shown a notable uptick in ENA trading pairs against GBP on top British exchanges. According to a report released June 7, ENA/GBP trading volume jumped over 30% compared to the previous week, driven by improved fiat onramps and promotional trading fee reductions. This trend is interpreted by analysts as a signal of healthy organic demand and growing confidence among UK traders in Ethena’s ecosystem.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.