Ethena has been on a roll lately, and it’s starting to show across the charts and headlines. The project’s flagship stablecoin USDe just became the third-largest stablecoin in the world, overtaking DAI with a market cap of $12.26 billion, according to Santiment.
That’s a massive milestone for a project that only launched in early 2024. On top of that, founder Guy Young recently bought back $25 million worth of ENA, signaling strong internal confidence, while the newly launched Ethereal DEX mainnet is already expanding USDe’s trading footprint. With ENA up 13% today to $0.5253, it’s clear momentum is building again.
So what’s driving all this renewed strength? Here are five solid reasons Ethena could become the next major DeFi powerhouse.
What you'll learn 👉
USDe Stablecoin’s Meteoric Rise
USDe isn’t just growing, it’s rewriting the stablecoin playbook. Its synthetic model, which blends derivatives hedging with real-world assets, has fueled a yield structure that consistently outperforms traditional stablecoins.
Even after briefly losing its peg during October’s flash crash, Ethena quick collateral upgrades restored confidence fast. That resilience helped push USDe past DAI in market cap, a milestone that now positions Ethena as one of the core players in the global stablecoin race.
Ethereal Mainnet Launch Expands Ecosystem Utility
The launch of Ethereal DEX Mainnet Alpha marks a major step in Ethena’s roadmap. It’s the first platform to enable USDe-native perpetual trading, effectively making USDe more than a passive stablecoin, it’s now a functional trading asset.
What makes it even better for ENA holders? They’re set to receive 15% of Ethereal’s future token supply. This deepens Ethena’s ecosystem loop and positions ENA at the center of a growing DeFi trading hub.
Top Bullish catalysts for $ENA@ethena_labs
— Smartmoney_Detective (@NaveenCypto) October 26, 2025
Data – @_dexuai pic.twitter.com/6WBfEm7rGr
Strategic Founder Buyback Boosts Confidence
When founders buy their own token, it usually says one thing: conviction. Ethena’s founder, Guy Young, recently purchased $25 million worth of ENA tokens, joining a broader buyback trend across the crypto sector in 2025.
For investors, that’s a reassuring signal, it not only reduces short-term sell pressure but also shows that the team believes in ENA price long-term trajectory. In a market where many projects fade after hype cycles, Ethena’s leadership is doubling down.
Powerful Ecosystem Partnerships
Ethena isn’t building alone. It’s partnering across DeFi’s fastest-growing verticals, from Caldera, which is integrating Ethena’s Stablecoin-as-a-Service stack, to Jupiter Exchange, which is launching its own stablecoin using Ethena’s infrastructure on Solana.
Meanwhile, Pendle and Aave have both rolled out new yield products built around USDe and sUSDe. These collaborations massively expand Ethena’s presence across chains, products, and yield opportunities, the kind of network effect that builds staying power.
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Proven Stability Under Stress
One of the biggest tests for any stablecoin protocol is how it performs under pressure. Ethena already faced that test in October, when USDe briefly crashed to $0.65 during a liquidity event, but over $2 billion in redemptions were processed seamlessly.
The peg recovered within hours, proving the robustness of its delta-neutral and arbitrage mechanisms. That kind of resilience isn’t just technical bragging rights, it’s a key reason why institutional players are beginning to treat USDe as a credible yield-bearing stable asset.
Moreover, Ethena is no longer just a DeFi experiment, it’s becoming a real financial infrastructure layer.
Between USDe’s rise, the Ethereal DEX launch, strategic buybacks, and cross-chain partnerships, the protocol is positioning itself at the heart of the next stablecoin wave.
With ENA price trading around $0.5253 and up 13% today, the market seems to be waking up to what’s brewing under the hood. If Ethena continues executing like this, calling it a “DeFi powerhouse” might soon be an understatement.
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