YZi Labs increases stake in Ethena (ENA) as TVL tops $14B

YZi Labs, formerly Binance Labs, has confirmed increasing its position in Ethena, the platform behind the synthetic dollar stablecoin USDe.

Such a move indicates confident and renewed dedication to fueling USDe’s prosperity story.

The YZi team aims to increase the stablecoin’s utility across decentralized finance (DeFi) and centralized exchanges (CEXs).

Their official press release highlights:

YZi Labs’ decision comes as Ethena blockchain thrives, with total value locked soaring from $5.7 billion in July to $14.153 billion at press time.

Notably, the impact investment firm was one of the earliest Ethena believers, supporting the protocol since its Sn 6 Incubation Program last year, before the network’s public launch of USDe.

Then, Ethena was experimenting with its crypto-centric synthetic dollar model, which leverages delta-neutral hedging to ensure stability as holders enjoy a sustainable yield without banks.

YZi’s early bet paid off well. Ethena has grown into a $14 billion project in over a year since launching the USDe stablecoin.

USDe has also continued to thrive. Its market cap $13.94 billion (DeFiLlama) ranks as the 3rd-largest dollar-backed asset in the crypto market, behind USDC and USDT.

USDe has become a solution for individuals seeking reliable, yield-bearing digital currencies.

Ethena Labs CEO and founder Guy Young believes USDe is a solution for users looking to make money from their idle assets, saying:

BNB chain expansion and new products

YZi’s renewed support comes as Ethena continues to build.

The Ethereum-based protocol expanded onto BNB Chain in early April.

Moreover, Ethena plans to launch a GENIUS-compliant fiat-pegged stablecoin (USDtb) and Converge, a settlement layer to support institutional transactions.

These products will enrich Ethena’s ecosystem by unlocking RWA settlement to connect DeFi and TradFi.

ENA price outlook

Ethena’s native token underperformed today, losing nearly 5% the previous 24 hours to $0.6666.

ENA’s bearish outlook mirrors broader sentiments.

The global cryptocurrency market cap plunged 2% in the last 24 hours to $4.04 trillion.

The downside follows short-lived gains that emerged after the Fed executed a 25 bp cut.

Nonetheless, experts say this could be the final dip before a decisive altseason.

Analyst Crypto Smith believes Ethena boasts what it takes to pull a 5x growth in the coming months.

He expects ENA to soar to the weekly target at $7, which would mean an over 950% increase from the prevailing market cap.

Furthermore, BitMEX co-founder Arthur Hayes predicts a 51x growth for Ethena by 2028.