Multicoin Capital, a prominent crypto-focused venture firm, has officially announced a strategic investment into ENA, the native token of the Ethena Protocol. This move underscores Multicoin’s strong conviction in the long-term potential of Ethena’s synthetic dollar ecosystem and its innovative financial architecture.
Vishal Kankani, head of investments at Multicoin, revealed in a tweet that the firm’s liquid fund has deployed capital into ENA. His rationale centers on Ethena’s USDe—the synthetic dollar—as a convergence point for three powerful crypto trends: stablecoins, tokenized yield-bearing assets, and sustainable on-chain financial infrastructure.
Why Multicoin Is Bullish on Ethena
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Unique Positioning in the Stablecoin Space
According to Kankani, USDe stands out among synthetic dollars because of its significant distribution and liquidity outside of the dominant players like USDC and USDT. This suggests that Ethena has managed to build a meaningful on-chain presence and usage beyond the traditional stablecoin paradigm. -
Strong Protocol Revenue
Since its inception, Ethena has reportedly generated nearly $600 million in revenue, with more than $450 million accrued in the past 12 months alone. Such performance reflects the protocol’s capacity to monetize its synthetic dollar model, especially leveraging creative mechanisms like delta-neutral hedging. -
Monetizing Funding Rates via Delta-Neutral Strategy
A core part of Ethena’s business model involves issuing USDe by accepting crypto collateral (like ETH or BTC) while simultaneously taking short positions on derivatives markets. Through this delta-neutral hedging, the protocol can profit from positive funding rates, turning the cost of leverage into a recurring income stream.
Implications for ENA Token Holders
Multicoin’s investment is not just financial—it’s a strong vote of confidence in ENA’s governance and yield potential. Ethena has laid out a “fee switch” mechanism, where a portion of the protocol’s revenue (from funding fees, staking, etc.) will be shared with ENA holders.
This could meaningfully increase the utility and long-term value of ENA, as it becomes not only a governance token but also a real yield-bearing asset tied to Ethena’s growth.
The Broader Context: Ethena’s Ambitious Moves
Ethena is not standing still. The project has announced a $360 million buyback plan for ENA through a newly formed entity, StablecoinX, in anticipation of a Nasdaq listing. This is more than a capital raise—it’s an alignment of incentives, building a long-term treasury of ENA, reinforcing commitment, and giving the protocol more control over its token supply dynamics.
Trusted investors and institutions are rallying around ENA: for instance, M2 Capital (a UAE-based firm) recently invested $20 million into ENA, highlighting growing global institutional interest.
Conclusion
Multicoin Capital’s investment in ENA is a significant signal for the crypto ecosystem. It shows that leading funds see Ethena not just as another DeFi or stablecoin project, but as a next-generation financial infrastructure that harmonizes yield, stability, and decentralized governance.
If Ethena continues executing on its vision—scaling USDe, driving adoption, and unlocking revenue sharing for ENA holders—this could mark a major inflection point, not only for the protocol but for how synthetic assets are built and used on-chain.
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