ENA Token Soars 13% as Ethena Labs Expands Stablecoin Collateral Framework

Sean Williams
Ethena Labs

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  • ENA gains 13% in 24h, 68% in 30 days.
  • BNB becomes first collateral for USDe stablecoin.
  • XRP and HYPE under review; SUI and ADA rejected.

The ENA token surged 13.28% in the past 24 hours, outpacing the broader crypto market’s 4% average gain. Over the past 30 days, ENA has rallied an impressive 68%, driven largely by Ethena Labs’ latest announcement: BNB has been officially accepted as collateral for the USDe stablecoin.

This marks a significant milestone for Ethena’s growing ecosystem and signals stronger investor confidence in the project.

BNB Becomes First Eligible Collateral for USDe

Ethena Labs’ Eligible Asset Framework, developed by its Risk Committee, set strict requirements for collateral selection. To qualify, assets must show:

  • A two-week average open interest above $1 billion.
  • Daily spot and perpetual trading volumes exceeding $100 million each.
  • Robust market depth to ensure liquidity stability.

BNB cleared these hurdles with ease, becoming the first crypto asset to back USDe. The move not only extends Ethena’s reach but also demonstrates its commitment to maintaining stability for the third-largest stablecoin in circulation, with a supply nearing $12 billion. Founder Guy Young has hinted at a target of $20 billion in the near future.

Market Reaction: ENA Outshines BNB

Interestingly, the market’s response was more pronounced in ENA’s price than in BNB’s. The surge suggests investors see Ethena’s collateral framework as a strong step toward building long-term stability and confidence in USDe, making ENA a more attractive investment.

Meanwhile, XRP and HYPE have reportedly entered Ethena’s evaluation radar and could follow BNB. On the other hand, SUI and ADA failed to meet the stringent liquidity and volume thresholds.

Ethena’s Expanding Ecosystem

Ethena Labs has been steadily broadening its ecosystem through partnerships and product launches. In August, the company partnered with Pendle, allowing users to lock in fixed yields via Principal Tokens and borrow against them on Aave—a strategy that has already attracted $4.3 billion, equal to 60% of USDe’s total supply.

Also Read: Anchorage and Ethena Debut USDtb as First Stablecoin Under GENIUS Act

Other milestones include Ethena’s collaboration with Anchorage to issue USDtb, a U.S.-compliant stablecoin under the GENIUS Act, and a partnership with Strata to design structured finance products tied to sUSDe and real-world assets.

With ENA surging and BNB added as collateral, Ethena Labs is reinforcing its position in the global stablecoin race. If expansion continues, USDe could soon challenge the dominance of larger rivals, while ENA cements itself as one of 2024’s breakout tokens.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses

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