Ethena's Deployed Capital Slumps as Demand for Leverage Dries Up

Ethena's deployed capital has declined significantly as basis trade capital reaches record lows, according to WuBlockchain analysis. The decline is driven by reduced demand for leverage as hedging activity crowds out leveraged long positions, pushing derivatives markets toward an unusual equilibrium state.

• →Ethena's deployed capital has experienced a notable slump as market conditions shift.
• →Basis trade capital has reached record low levels according to WuBlockchain data.
• →Hedging activity is crowding out leveraged long positions in the derivatives market.
• →Derivatives markets are moving toward an unusual equilibrium due to changing trading dynamics.
• →Demand for leverage has significantly decreased across the market.