Ethena Shifts Strategy: Drops USDH Hyperliquid Bid to Turbocharge Product Innovation
Ethena just pulled the plug on its USDH Hyperliquid bid—redirecting all firepower toward next-gen product development.
Strategic Pivot or Market Pressure?
The move signals a sharp turn from chasing liquidity partnerships to building in-house muscle. No more pouring resources into external bids—every dev cycle now fuels core protocol upgrades.
Innovation Over Integration
Prioritizing product over partnerships might sting short-term, but long-term? It’s a bet on out-innovating, not outbidding. Because let’s be real—in crypto, the only moat that matters is the one you code yourself.
Finance traditionalists are already clutching their pearls. ‘But the liquidity! The partnerships!’ Meanwhile, Ethena’s building what actually matters: products users want, not just deals VCs love.
Focus Shifts to Product Innovation
Despite all this, Ethena is determined to ramp up its product development. The Founder Guy Young said that the team will be zeroing in on new offerings. Some of them are hUSDe synthetic dollars, USDe-powered savings tools, and cutting-edge HIP-3 market designs.
These include reward-bearing trading collateral, modular prime broking, and perpetual swaps on equities. Young highlighted that their excitement lies in building solutions that expand crypto’s utility.
Moreover, Arthur Hayes, co-founder of Maelstrom’s crypto investment fund, has been increasing his stake in Ethena. According to Arkham data, Hayes purchased nearly $1 million worth of ENA tokens within 48 hours.
This included 578,956 ENA tokens valued at $473,000 on September 11 and an earlier tranche worth $521,000. His buying spree comes ahead of Sunday’s critical vote on the USDH proposal.
As of writing, Ethena is trading at $0.767120, which shows a 2.86% decrease in the last 24 hours. The trading volume is still robust at $704.54 million, according to CoinMarketCap.
Ethena’s withdrawal reshapes Hyperliquid’s stablecoin while Arthur Hayes’ bold ENA purchases show continued belief in Ethena’s long-term vision.
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