📊 What Ethena is telling us about the #crypto market: Ethena's deployed capital has dropped to a multi-year low, at just 71% of its 2025 trough, signaling extremely weak net long demand in crypto. Directional longs and shorts are nearly balanced, a rare equilibrium in #crypto derivatives history that is unlikely to last. #Perpetual futures show stable open interest but persistently negative funding rates, reflecting rising hedging and short demand. Ethena's basis trades have shrunk over 60% since February 8, falling from over $2 billion to under $800 million, mainly due to unwinding of profitable but unsustainable basis positions and pressure from directional shorts and hedging activity. Free Academy & VIP Access