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🚀 Ethena's Capital Deployment Declines Amid Weakening Long Demand

Ethena's deployed capital, which serves as an indicator of excess long demand in futures markets, has significantly decreased to approximately $791 million. According to NS3.AI, this marks a decline of over 85% from its peak, reflecting a weakening demand for leveraged long positions. Since Bitcoin's price fell to $60,000 on February 8, Ethena's basis position has dropped by more than 60%, from over $2 billion to below $800 million, despite the broader market remaining relatively stable. The analysis indicates that increased hedging activity by venture capital firms and smaller projects is driving crypto derivatives towards a balance between directional longs and shorts.

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