A day ago, analyst Kapoor Kshitiz shared a thread explaining why Ethena (ENA) might be one of the most undervalued projects in the market right now. The token was up 35% on the week with strong momentum heading into the $0.50–$0.55 resistance zone.
But fast forward to today, and ENA has pulled back to around $0.45, giving up some of those gains as the broader market corrects.
So what happened – and is the bullish case still valid?
What you'll learn 👉
Rejected at Resistance, Now Cooling Off
From a technical standpoint, ENA got rejected near the $0.50–$0.55 zone, a level that’s acted as a ceiling several times since May. The price is now trading around $0.45, down roughly 10% from the recent local high, following a dip across altcoins.
Still, the move doesn’t erase the bigger picture Kapoor laid out – and if anything, it might just be a retest in a broader uptrend.
Here’s What Kapoor Highlighted
✅ Regulatory Advantage
Ethena met with the SEC’s Crypto Task Force, which gives it a rare early edge in compliance. Kapoor notes this could pay off as rate cuts approach, making stablecoin protocols like Ethena more attractive when bond yields fall and perpetual funding increases.
✅ Explosive USDe Growth
Ethena’s native stablecoin, USDe, has reached:
- $6.5 billion+ in supply
- More USDe than USDC on Bybit ($540M vs $444M)
- $87 million deployed on the TON blockchain in just six weeks
That’s fast adoption across multiple ecosystems.
$ENA is pumping and is up 35% in a week. This is good but at the same time it is still down 60% from the ATH.
— Kapoor Kshitiz (@kshitizkapoor_) July 23, 2025
An amazing project that is undervalued. I'll explain why……🧵 pic.twitter.com/FmWv9lk420
✅ Expanding Ecosystem
The Ethereal DEX, built on Converge, hit $720M in TVL pre-launch – and 15% of its token supply goes to sENA stakers. On top of that, Terminal Finance just launched a new DEX + RWA hub with $125M+ in TVL.
It’s not just hype. Real infrastructure is being built.
✅ Revenue Model That Shares With Holders
Kapoor also pointed out the 10 bps mint fee on USDe and the fact that sENA holders will receive protocol revenue – a rare and sustainable model in DeFi.
Read also: Ripple (XRP) vs Stellar (XLM): Which Token Is Better to Hold?
Big Catalysts Still on the Table
Even with today’s dip, several key drivers remain in play:
- $360M ENA buyback from @StablecoinX
- Ongoing treasury growth
- And of course, the Arthur Hayes effect, who continues to back Ethena publicly
These catalysts suggest the recent rejection may be a pause – not the end of the current trend.
Wrapping Up
Yes, ENA failed to break through the $0.50–$0.55 zone and is now trading lower. But the overall bullish structure remains, and the fundamental growth of USDe, the Ethena ecosystem, and protocol revenue all support the long-term case.
Kapoor called ENA “an amazing project that is undervalued,” and while price action might take a breather, that thesis hasn’t changed overnight.
If the market stabilizes and support holds above $0.42–$0.44, ENA could still take another shot at breaking out.
Keep it on your radar.
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