YZi Labs Increases Investment in Ethena Labs
YZi Labs, formerly known as Binance Labs, has increased its stake in Ethena Labs. Ethena is the company behind the ENA token and the USDe stablecoin. USDe is the third-largest USD-backed stablecoin by market cap.
YZi Labs said this move supports its goal to build open and scalable digital dollar systems. These systems aim to improve efficiency and liquidity in the financial world.
Ethena is focusing on growing its presence on the BNB Chain. The company is working on new money markets and partnerships to expand its ecosystem.
YZi Labs plans to help Ethena increase USDe adoption on Centralized Exchanges (CEXs) and Decentralized Finance (DeFi) platforms. It also aims to boost the stablecoin’s use cases and support the development of USDtb, a fiat-backed stablecoin following GENIUS compliance.
Dana Hou, an investment partner at YZi Labs, said, “We’re excited to continue backing the Ethena team in a meaningful way. We look forward to seeing Ethena build on-chain dollars that last and make a real impact.”
Currently, USDe has a market cap of $14 billion. ENA ranks as the 42nd largest cryptocurrency, valued at $4.6 billion.
Ethena (ENA) Faces Downside Risks in Technical Analysis
Ethena’s token, ENA, dropped to an intraday low of $0.6546 on Friday. It is testing support near the 50-day Exponential Moving Average (EMA) at $0.6664.
Technical indicators suggest more downside risk. The Moving Average Convergence Divergence (MACD) has shown a sell signal since Monday. This has led investors to reduce their ENA holdings.
The Relative Strength Index (RSI) also fell from 74 to 44 on August 12. This drop confirms weakening bullish momentum.
If ENA breaks below the 50-day EMA, the next support levels are the 100-day EMA at $0.5851 and the 200-day EMA at $0.5332.
However, the 50-day EMA may hold as support. This could lead to a rebound toward the recent high of $0.8738.
Market Summary
- Ethena’s ENA token fell 24% from its recent high.
- ENA is testing the 50-day EMA support at $0.6664.
- YZi Labs increased its investment in Ethena Labs.
- USDe is the third-largest USD stablecoin with a $14 billion market cap.
- Technical signals point to possible further declines but support may hold.
