Everyone, I’ve been watching Ethena for three months. Today, let me look at it from a different angle.
It makes synthetic dollars; $ENA is just the ticket in.
Over 24 hours, it’s down 5.416%: it fell from 0.2179 to 0.16567, then climbed back to 0.18557, with a 31.53% range.
The 20-day range is 0.16567 to 0.2474. The current price sits at the 24.3rd percentile, well above yesterday’s 3% low.
The rebound is real. How solid it is—that’s another question.
Where does the revenue come from? It holds spot assets while hedging on perpetuals, earning funding rates plus staking yield.
What’s the rate now? ENA perpetuals on Binance are at 0.005%, settled every eight hours—that annualizes to a little over 5%.
Five percent isn’t enough to justify a premium.
The staking yield is the selling point, and it’s funded by the rates. When rates are scraping the floor, that selling point loses its shine.
In the stablecoin market, the question isn’t who pays more; it’s who can withstand zero funding rates.
I’ve always thought Ethena occupies a very unusual position: it welds on-chain dollars to exchange perpetuals, and the funding rate is where the weld holds.
Open interest rose from $512 million to $586 million, up 14.6% in a day. As the price rebounded, positions grew too. Is this genuine buying support or people getting trapped? We’ll have to see what the next candle shows.
Trading volume was $761.5 million, down quite a bit from the day before yesterday. Liquidity is retreating too, and most of the tokens are probably just changing hands between existing holders. I double-checked before believing this wasn’t fresh money coming in.
It’s like the stage is set, but the star hasn’t arrived and the audience is already applauding. Does that applause do any good?
It does—it can help sell tickets to the next show.
But a good ticket sale doesn’t mean the show is any good.
Here’s my take: I’m keeping an eye on the stablecoin sector, but paying less attention to chasing this token at higher prices.
It’s still down 29.902% over 30 days, with average daily volatility of 11.503%. One day’s move can wipe out a week’s gains.
Does anyone have a token with a compelling story but weak funding rates? Let’s talk in the comments.
$BTC $ETH
#INTW #JCT #Cryptocurrency
The above reflects my personal trading-system notes and observations of the data. It is not investment advice.
It makes synthetic dollars; $ENA is just the ticket in.
Over 24 hours, it’s down 5.416%: it fell from 0.2179 to 0.16567, then climbed back to 0.18557, with a 31.53% range.
The 20-day range is 0.16567 to 0.2474. The current price sits at the 24.3rd percentile, well above yesterday’s 3% low.
The rebound is real. How solid it is—that’s another question.
Where does the revenue come from? It holds spot assets while hedging on perpetuals, earning funding rates plus staking yield.
What’s the rate now? ENA perpetuals on Binance are at 0.005%, settled every eight hours—that annualizes to a little over 5%.
Five percent isn’t enough to justify a premium.
The staking yield is the selling point, and it’s funded by the rates. When rates are scraping the floor, that selling point loses its shine.
In the stablecoin market, the question isn’t who pays more; it’s who can withstand zero funding rates.
I’ve always thought Ethena occupies a very unusual position: it welds on-chain dollars to exchange perpetuals, and the funding rate is where the weld holds.
Open interest rose from $512 million to $586 million, up 14.6% in a day. As the price rebounded, positions grew too. Is this genuine buying support or people getting trapped? We’ll have to see what the next candle shows.
Trading volume was $761.5 million, down quite a bit from the day before yesterday. Liquidity is retreating too, and most of the tokens are probably just changing hands between existing holders. I double-checked before believing this wasn’t fresh money coming in.
It’s like the stage is set, but the star hasn’t arrived and the audience is already applauding. Does that applause do any good?
It does—it can help sell tickets to the next show.
But a good ticket sale doesn’t mean the show is any good.
Here’s my take: I’m keeping an eye on the stablecoin sector, but paying less attention to chasing this token at higher prices.
It’s still down 29.902% over 30 days, with average daily volatility of 11.503%. One day’s move can wipe out a week’s gains.
Does anyone have a token with a compelling story but weak funding rates? Let’s talk in the comments.
$BTC $ETH
#INTW #JCT #Cryptocurrency
The above reflects my personal trading-system notes and observations of the data. It is not investment advice.
