As Bitcoin approaches its fourth halving event, a newly introduced coin based on the Ethereum blockchain has emerged as a strong competitor in the cryptocurrency ecosystem following recent achievements.
Ethena (ENA) token is obtained With a current market capitalization of over $1.9 billion, it will likely have significant traction in the short term. Many cryptocurrency users are curious to know more about this new token. Let’s take a look at why this token is making rapid inroads into the cryptocurrency market.
Why is Ethena (ENA) price trading higher?
Ethena is up 57.46% over the past 7 days. As of press time, the token is trading at $1.37, up 2.95% over the last 24 hours. With a market capitalization of $1.9 billion, it is the 57th largest cryptocurrency in the entire cryptocurrency ecosystem.
With a price increase of 58.00% over the past 7 days, ENA has outperformed the global cryptocurrency market, which is currently up 3.80%.
The rising price indicates that users are flocking to the Ethena ecosystem to take advantage of existing investment opportunities. Last week, on April 2nd, Ethena Lab, a DeFi protocol providing users with USDe, a stablecoin generating $1.3 billion in revenue, launched Release A new governance token called the ENA token to improve the operation of the Ethena protocol.
During that time, Ethena Lab announced an airdrop campaign offering free ENA tokens to active participants. As a result, many users were attracted by the incredible airdrop of 750 million ENA tokens available on the Ethena network.
A few days ago, blockchain analytics firm Lookonchain shared an analysis report showing that three wallets withdrew 11.9 million ENA ($15.23 million) from the Binance exchange to stake their funds in ENA tokens.
Following the launch of the airdrop, ENA soared more than 8% to trade at around $0.64, giving it a market capitalization of around $500 million. The token hit its lowest price of $0.5324 on April 2, 2024, when it was launched 10 days ago. The current price is 155.62% higher than the all-time low. Meanwhile, the token hit its highest price of $1.40 yesterday, April 9, 2024. The current price is 2.55% below the all-time high.
Ethena (ENA) Price Prediction
Let’s take an in-depth look at the state of Ethena to better understand whether the current bullish momentum will lead to further surges in the coin’s price.
ENA’s RSI currently stands at 50.91, indicating that the token is likely to experience some correction or short-term downtrend.
The MACD line has risen above 0, which indicates that ENA is currently in a bullish trend. But what’s more interesting is that the MACD line has crossed above and below the signal line, indicating downward momentum.
If an ENA bear market rally occurs, the token will likely move lower to maintain the $1.139 support level in the next few days. Likewise, if the cryptocurrency loses further buyer interest, its value will fall towards the support level of $0.977.
Alternatively, if the potential downtrend momentum is nullified, the token will attempt to retest or surpass the previous high of $1.40.
What is Ethena (ENA)?
Ethena synthetic currency protocol It runs on top of the Ethereum blockchain, aiming to provide digital asset users with blockchain-based stablecoin savings. The protocol’s stablecoin, USDe, is designed to peg its value to the U.S. dollar by staking Ethereum for a specific period of time.
stablecoin It is one of the major applications of blockchain protocols and currently has a total market capitalization of $140 billion, accounting for approximately 7% of the overall cryptocurrency market share. Today, the stablecoin landscape is led by USDT, which accounts for 70% of the market share, followed by USDC, BUSD, and DAI. USDe, a new entrant in the stablecoin market, attracted A week after launch, it has generated $400 million in TVL and is currently offering a yield of 35% at current interest rates.
Earlier this month, Ethena Labs, the company behind the Ethena protocol, launched the ENA token, which serves as the native token within the Ethena ecosystem. mainly Use cases ENA tokens include:
- ENA tokens allow holders to participate in the governance processes of the Ethena protocol, such as voting on proposals for platform direction, updates, and development. By holding ENA tokens, users can make decisions that affect the future of the protocol.
- ENA tokens are used to reward users in the Ethena ecosystem. This includes contributing to the network security and overall operation of the protocol, participating in the staking mechanism, and being rewarded for providing liquidity.
- ENA also serves as a utility token in the Ethena ecosystem. Customers can use tokens to pay for services within the ecosystem, access certain features, and can also be used as a medium of exchange for transactions conducted within the Ethena network. Users can purchase ENA tokens on cryptocurrency exchanges such as Binance, Kucoin, Bitget, etc.
conclusion
Ethena (ENA) shows strong return potential this year thanks to its innovative model and passionate community.
While the coin has the potential to turn into the next big thing, it still needs to prove it can attract the right developers to build on its technology.