ENA Surges to Yearly High After Ethena's Long-Awaited Updates
Ethena's recent announcement of four ecosystem updates has sent its token ENA soaring to a yearly high. The Foundation said it had bought all locked tokens from major seed investors that sold ENA in the last nine months, effectively eliminating VC overhang.
The move is seen as bullish and long overdue by analysts. Additionally, monthly VC investor unlocks have been scrapped off, reducing one of the bearish factors affecting ENA. However, team tokens will remain locked as per earlier plans.
Ethena's new business model has shifted towards diversifying collateral beyond crypto to traditional liquid loans to avoid low yields due to bear markets. The project also scaled expansion for USDe, with Coinbase being its latest distribution partner.
The community has overwhelmingly supported the new plans, with a proposal voting in favor of it receiving 100% support. Ethena's founder Guy Young reacted to the update by saying, 'Long overdue. Make tokens great again.'