Ethena (ENA) Price Rise Attracts Large Size Investors

ENA, the native token of Ethena Labs, has been the center of attention in the decentralized finance (DeFi) space following a significant increase in value. The token, recently trading at $1.34, more than doubled its value to $1.52 after distributing 5% of its total supply to holders of USDe, a synthetic dollar from the ecosystem. This landmark event is largely responsible for keeping ENA in the market spotlight.

According to the Web3 knowledge graph protocol, OxScope, institutional investors have been the main accumulators of the tokens since their launch. The accumulation trend remains robust, balancing the selling pressure caused by recent deposits on cryptocurrency exchanges. A crucial detail is the notable increase in withdrawals in the last 48 hours, coinciding with the search for potentially higher returns.

April 3: We said $ THIS was bullish.
Now: $ THIS went up from $0.93 to as much as $1.39 (+49.5%).

But we think $ THIS is STILL bullish. In this thread, we give 5 reasons why 👇

(Quick reminder: not financial advice, DYOR) pic.twitter.com/Ifs6FatN2C

— 0xScope (@ScopeProtocol) April 9, 2024

“Season 2” of Ethena Labs promises more attractive rewards for those who stake ENA in accordance with its protocol. Users who stake at least 50% of their holdings in USDe will receive a 50% increase in total rewards. This new policy encouraged many investors to withdraw their tokens from exchanges to participate in staking, aiming to increase their returns.

Furthermore, ENA has strongly influenced the speculative market. Coinglass data analysis reveals that open interest on ENA Futures reached $372 million, with more than 50% of positions betting on the token’s appreciation. This optimism suggests traders’ confidence in maintaining the uptrend.

However, an intriguing aspect is the decrease in social enthusiasm around ENA, evidenced by the drop in discussions in major cryptocurrency groups. This decline in social frenzy could affect the engagement of retail investors, traditionally attracted to the effervescence of social media. At the time of publication, the price of ENA was quoted at US$1.40 with a drop of 2% in the last 24 hours.

Disclaimer:

The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.