The Ethena (ENA) token, built on the Ethereum blockchain, serves as a governance token and powers the DeFi protocol underlying the USDe stablecoin. Holders of the ENA token have the authority to shape the future of the protocol.

Since its launch, Ethena has become the fifth largest stablecoin in the cryptocurrency market based on market capitalization. Ethena Labs distributed 750 million ENA tokens on April 2nd, equating to 5% of the total token supply.

The token's "Shred Campaign" commenced on February 19th, allowing users to lock their collateral in exchange for ENA tokens during the distribution period. These participants are now able to withdraw their assets.

Following the successful launch, Ethena introduced its phase 2 incentive program, "The SATS Campaign," on April 2nd. This phase involves utilizing Bitcoin as collateral for the protocol until September 2nd, 2022.

Integrating BTC into the Ethena ecosystem will enable the introduction of Bitcoin perpetual contracts, attracting $25 billion in open interests to delta hedge funds. This mitigates the directional risk associated with token price movements and results in a 2.5X surge in Ethereum future perpetual.

ENA tokens have been listed on major exchanges like Binance, Bybit, and Kucoin.

Is ENA The Next Major Breakthrough?

The MACD indicator points to an increasing buying pressure in the cryptocurrency market, while bullish convergence in averages hints at positive price action for the Ethereum-based token. Since its launch, ENA has garnered significant interest in the market, with prices surging by 200% initially. However, after reaching an all-time high of $0.898, the price has stabilized.

In the short term, if bullish momentum continues, Ethena's price may reach a new high of $1 over the weekend. Conversely, if the rally wanes, the altcoin might experience a decline and test its low of $0.525 this week.