Ethena (ENA) has been one of 2025’s hottest crypto projects, attracting major investments including from Trump’s World Liberty Financial (WLFI).

Even Arthur Hayes, a crypto titan, calls it his biggest bet of the year.

But what makes Ethena so special? And why are top investors doubling down?

This post breaks down Ethena’s rise and its impact on the future of stablecoins.

Arthur Hayes’ Bold Bet on Ethena

“Ethena (ENA) is my favorite asset in my portfolio, and it’s probably my largest position.”

This statement alone carries weight. Arthur Hayes, a billionaire and a veteran of the crypto industry, isn’t just any investor.

As the co-founder and former CEO of BitMEX, he played a pioneering role in cryptocurrency derivatives trading as early as 2014. When he speaks, the crypto world listens.

But Arthur Hayes isn’t the only high-profile figure bullish on Ethena.

Ethena is also the third-largest holding in the investment portfolio of the Trump family through their project, World Liberty Financial.

This means that one of the most influential political and financial names has a stake in Ethena (ENA), potentially driving even more attention and investment toward the project.

So, what makes Ethena so unique that it has earned Hayes’ largest position and a prime spot in Trump’s portfolio?

What price targets do analysts foresee for Ethena this bull cycle? Let’s dive in deeper.

Understanding Ethena: A Game-Changer in Stablecoins

Ethena is a groundbreaking protocol built on Ethereum to create a crypto-native stablecoin, USDe.

Unlike traditional stablecoins such as Tether (USDT) and USD Coin (USDC), which are backed by fiat reserves held in bank accounts, USDe operates entirely within the cryptocurrency ecosystem.

It relies on derivatives and digital assets like Bitcoin (BTC) and Ethereum (ETH) for its value and stability.

How Ethena Works: A Simple Example

Imagine Alice wants to send money to her friend overseas.

Instead of using traditional banking systems that are slow and costly, she deposits 0.5 BTC (worth $48,000) into the Ethena protocol.

This allows her to mint 48,000 USDe, which she can instantly send to her friend.

Her friend can then redeem it for local currency or use it for transactions, all while maintaining stability against the U.S. dollar.

With Ethena, stablecoin transactions are instant, seamless, and free from the bureaucracy of traditional banks.

Think of it as having a personal bank in your pocket that’s always open, with no hidden fees, delays, or restrictions.

To fully grasp the Ethena protocol, let’s break down its two core assets with each designed for a distinct purpose.

The Two Coins Powering Ethena’s Ecosystem

Ethena operates with two key assets:

• USDe – The synthetic stablecoin backed by ETH derivatives
• ENA – The governance token that allows holders to participate in decision-making and earn rewards

Key Features of Ethena:

• Yield-Bearing: Holders can earn passive income from staking and funding rates
• Delta-Hedging: Uses derivatives to neutralize ETH price volatility
• Censorship-Resistant: Does not rely on traditional financial institutions
• Ethereum-Based: Operates entirely within the Ethereum ecosystem

So why are whales interested in Ethena?

Why Are Whales Interested in Ethena?

1. Designed for Success and Censorship Resistance

Ethena was built from the ground up to be a truly decentralized, censorship-resistant stablecoin alternative.

Unlike fiat-backed stablecoins, which can be frozen or restricted by regulatory authorities, USDe operates without ties to traditional banking systems.

2. Native Yield Generation

One of Ethena’s biggest draws is its impressive 13% annual yield.

Compared to traditional stablecoins, which offer yields of around 5% or less, Ethena provides a far more lucrative option for crypto whales looking to generate passive income.

This yield is achieved through innovative derivative strategies and collateral utilization involving Bitcoin and Ethereum.

3. Rising Total Value Locked (TVL)

Ethena’s Total Value Locked (TVL) has been climbing towards $5 billion, a strong indication of growing adoption and trust within the crypto community.

High TVL levels often attract institutional investors and large-scale traders seeking liquidity and stability.

4. Volatility Management

Unlike many stablecoins that struggle with price stability, Ethena uses advanced hedging mechanisms to ensure consistent value.

Its seamless integration with major DeFi platforms like Aave, Uniswap, and Curve Finance also enhances its usability within the decentralized finance ecosystem.

5. Institutional-Grade Partnerships

Ethena’s collaboration with traditional financial giants like Franklin Templeton and Fidelity further cements its legitimacy.

These partnerships provide a stamp of approval that attracts institutional investors and ensures ample liquidity for the project.

Now, I know you are probably wondering how you can position yourself. Continue below!

How to Position Yourself for the Ethena (ENA) Boom

Given Ethena’s strong fundamentals and growing institutional backing, many investors see this as an attractive entry point.

At a current price of $0.4, analysts predict Ethena could reach $3.39 in 2025, representing a potential 4x return.

The launch of Ethena’s iUSDe stablecoin and a planned Telegram-based payment application in 2025 could further drive adoption and price appreciation.

If you’re looking to invest, Bybit is the best platform to buy Ethena.

As the second-largest crypto exchange by trade volume, Bybit offers deep liquidity and reliable trading options.

Final Thoughts: Is Ethena the Next Big Thing?

With backing from top investors like Arthur Hayes, the Trump family, Pantera Capital, and Delphi Labs, Ethena has positioned itself as a major player in the crypto space.

Its innovative approach to stablecoins, high-yield incentives, and institutional partnerships make it one of the most promising projects of the 2025 bull market.

Of course, investing always carries risks, so do your own research and make informed financial decisions.

What are your thoughts on Ethena? Do you see it as the next big stablecoin disruptor?

Share your opinions in the comments, and don’t forget to share this post with others who might be interested!