Ethena Price Rises 8% Amidst $1.2 Billion Crypto Market Liquidations
The price of Ethena (ENA) rose by 8% to $0.44 on October 17, despite a general crypto market downturn. This contrasts with Bitcoin and Ethereum, which lost key support levels.
Key Factors for ENA's Price Increase:
- Ethena's stablecoin, USDe, temporarily lost its dollar peg during a significant liquidation event but has since stabilized.
- A proof of reserves update was issued, explaining the de-peg due to Binance's oracle relying on internal data.
- Binance announced a $400 million reimbursement fund to cover user losses from this anomaly, easing investor concerns.
- USDe maintained its peg during subsequent market liquidations.
Expansion of Ethena's Services:
- Ethena expanded its Stablecoin-as-a-Service to Conduit, a major rollup deployment platform supporting over 60 Ethereum-based networks.
- This integration allows projects on Conduit to launch native stablecoins using Ethena’s architecture.
- Conduit holds 55% of Ethereum's active rollups with over $4 billion in total value locked.
Ethena's market cap is $3.14 billion, placing it among the top 50 cryptocurrencies. Trading volume increased by 60.5% to $627.9 million, indicating renewed investor interest as USDe stabilizes.
