Today at the Token2049 conference, MEXC Ventures announced its second strategic investment in Ethena, investing an additional $30 million into the protocol’s ecosystem.
Following this, MEXC now has a. total investment of $66 million in Ethena, underscoring its confidence in Ethena’s trajectory.
This fresh capital builds upon MEXC’s earlier engagements with Ethena; it previously allocated $16 million directly into Ethena and separately purchased $20 million worth of USDe, Ethena’s synthetic stablecoin.
The timing of this additional investment is appreciated by experts, suggesting that MEXC sees strong upside in Ethena’s governance mechanism and its growing footprint in the stablecoin sector.
It is worth noting that MEXC’s $20 million USDe acquisition was paired with incentives, such as zero-fee trading pairs and staking rewards, to stimulate adoption and liquidity on its exchange.
Major investment in Ethena by market giants
Earlier this week, it was reported that M2 Capital, the investment arm of UAE-based M2 Holdings, recently invested USD 20 million in Ethena’s governance token ENA.
As per several reports, Ethena has also got backing from YZi Labs to help expand USDe adoption, especially on the BNB chain, and support new stablecoin and institutional settlement layer developments.
Yet it has also raised funding in five different rounds, and its lead investors include Lachy Groom, Felicis, GSV Ventures, Village Global, January Ventures, and Neo.
Dragonfly Capital, Polychain Capital, Pantera Capital, F-Prime Capital, Kraken, and PayPal also hold significant investments in Ethena.
In the stablecoin category, Ethena has continued to boost its presence, and USDe is among the top five stablecoins in the market capitalization of $14.75 billion, with a trading volume of $540.54 million.
Experts argue that USDe is soon expected to beat the market capitalization of $20 billion and its trading volume is assumed to touch $1 billion by the end of this year.