- YZi Labs increased its investment in Ethena Labs after the USDe stablecoin surpassed $14 billion in market capitalization this month.
- Despite institutional backing, ENA token fell 24% from its peak and is testing key technical support levels.
On September 19, YZi Labs revealed plans to increase its financial backing of Ethena Labs. This investment firm, which previously operated under the name Binance Labs, expanded its support after observing strong performance from Ethena’s synthetic dollar stablecoin. The USDe stablecoin recently achieved a market capitalization exceeding $14 billion, further solidifying the relationship between these entities.
A portion will facilitate the integration of USDe onto more cryptocurrency exchanges. Another segment will enable technical development on BNB Chain, while remaining resources will accelerate new product creation.
Among these new products are a fiat-collateralized stablecoin designated USDtb and an institutional-grade settlement solution called Converge. According to DefiLlama metrics, the total value locked within Ethena’s protocols now also surpasses $14 billion.
Meanwhile, Ethena’s native cryptocurrency ENA demonstrated substantial price fluctuations. Its value dropped approximately 24% from a recent high of $0.8077, settling near $0.67. At this level, the token is approaching its 50-day exponential moving average, which market analysts often monitor as a potential support zone. The current price reflects a daily decline between 4% and 5%.
Earlier this year, Ethena Labs shared a comprehensive strategy for 2025. The steady rise in USDe’s market capitalization corresponds with this outlined trajectory. A crucial component of this plan involves partnering with Anchorage Digital to bring the USDtb stablecoin into conventional banking channels.
