3 Reasons Why the Ethena (ENA) Price Has Soared by 160% in the Past Month

TL;DR

• Ethena’s native token has skyrocketed by triple digits within the final 30 days, fueled by main trade listings and different causes.
• Some analysts imagine the value might proceed pumping within the brief time period, however the upcoming token unlocks counsel a bearish situation can also be in play.

ENA Takes Middle Stage

There are quite a few cryptocurrencies properly within the inexperienced on a month-to-month scale, however only a few can match the value rally of Ethena (ENA) throughout that interval. The token has exploded by virtually 160% and is at present value roughly $0.67 (per CoinGecko’s information).

One doable issue contributing to the bull run is the help from Upbit. Earlier this month, the main South Korean crypto trade introduced the ENA/KRW, ENA/BTC, and ENA/USDT buying and selling pairs. Thus, it elevated the asset’s liquidity, improved its accessibility, and supplied it with a reputational enhance.

It adopted the instance of Binance, Kraken, KuCoin, and Bybit, which beforehand embraced ENA. For its half, Coinbase added the token to its roadmap and would possibly formally listing it as soon as it meets sure standards. 

One other ingredient might be the fast development of USDe – the artificial stablecoin of the Ethena protocol. The product is pegged to the American greenback, however differs from USDT, USDC, and different market leaders as a result of it is just not backed by fiat or different property. As a substitute, it depends on a technique known as delta-neutral hedging to take care of its peg.

Over the previous month, the market capitalization of USDe has elevated considerably, from $5.3 billion initially of July to its present worth of $8.4 billion. 

Final however not least, ENA’s worth rally might be linked to the current exercise of whales. On July 30, the favored X person Ali Martinez revealed that enormous traders bought virtually 80 million tokens in simply a week. The USD equal of the stash is round $53 million (at ongoing charges).

The event displays robust confidence within the asset and should incentivize smaller gamers to hitch the ecosystem as properly. Furthermore, such accumulation leaves fewer tokens accessible on the open market, which, mixed with non-declining demand, ought to lead to a worth pump.

What’s Subsequent?

A number of analysts imagine ENA could proceed to rise within the following months. X person McKenna argued the asset has “the most effective trying chart in DeFi,” suggesting it might quickly climb to the early-2025 ranges. Recall that initially of the 12 months, the value traded properly above $1.

For his or her half, Reetika assumed that ENA’s additional rally will “absolutely rely” on what occurs with Ethereum (ETH) as soon as it probably reaches $4,000. The analyst stated this isn’t the best time to put money into the token, however cautioned merchants to remain prepared for doable buy-the-dip alternatives.

In the meantime, over 140 million ENA tokens are scheduled for launch within the subsequent seven days. The elevated circulating provide could result in a worth pullback if demand doesn’t react accordingly.