Ethena's native token, ENA, peaked above $1 on June 4 but has since dropped to $0.56 as of the current time. This reflects a monthly decline of 37.54% and a weekly decline of 24%. There are concerns about whether the token will recover.
The outlook for ENA was initially positive at the start of the month, but our prediction of a bearish turn seems to be coming true as ENA has been on a decline since June 7.
On June 18, Ethena Labs announced a major ENA tokenomics revamp with a new vesting mechanism, which could affect its price trajectory. Ethena Labs introduced new staking and restaking capabilities for the ENA token and a forced vesting mechanism to promote long-term stability.
ENA's integration now includes generalized staking to provide economic security in cross-chain transfers of the protocol's stablecoin USDe through LayerZero's DVN system. The token's series of updates aims to improve its functionality and align it more closely with USDe's growth. While the stablecoin's market cap remains well above $3 billion, it has dropped to eighth place among stablecoins.
In further bad news for Ethena, a major phishing attack yesterday, June 23, resulted in a significant loss of assets.
3,657 MKR tokens ($8,766,097) and 2.56M PT Ethena tokens ($2.4M) were stolen. The exploiter sold 3,657 MKR for 2,502 ETH ($8,766,097), causing a 7.5% drop in the price of MKR. 2.56M PT Ethena tokens were swapped for 689 ETH ($2.41M). Ethena is now at an all-time low.
Time to buy the dip?
BitMEX co-founder Arthur Hayes foresaw the parabolic price movement this year, noting on X that the influx of the Asian market could drive the price higher. In a second post, he predicted the price could hit $10.
While some may view this as too bullish, other analysts expect the price to drop even further, hitting another all-time low in 2024: $0.34. Ethena will have a turbulent 2025, with prices ranging from as low as $0.09 to $1.31. This presents an opportunity to buy the dip, strategically preparing for the rocky seas ahead.
Ethena is a synthetic dollar protocol built on Ethereum that will provide a crypto-native solution for money that is not reliant on traditional banking system infrastructure alongside a globally accessible dollar-denominated savings instrument — the Internet Bond.
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