Altcoin
Here’s Why Ethena Price Surged 10% Despite Crypto Market Crash
Defying the broader crypto market correction, Ethena price has surged 10% to $1.2 in the last 24 hours. This bullish push comes amid strong ENA whale accumulation and a recent collaboration with Donald Trump’s crypto project World Liberty Financial. Over the past week and more, there has been continuous whale accumulation for Ethena as its USDe synthetic dollar sees strong demand crossing the $6 billion market cap.
Ethena Price Surges Amid Collaboration with Donald Trump Project
Despite the broader crypto market crash, Ethena price surged 10% to $1.20 earlier today with its daily trading volume surging 174% and crossing $1 billion. The Coinglass data shows a 20% jump in open interest to $700 million suggesting that traders continue to remain bullish on the altcoin. On the monthly chart, ENA has extended its gains to more than 100% amid the strong demand for the USDe.
Spot On Chain has reported significant activity surrounding ENA tokens, highlighting major purchases and wallet movements. Following the announcement of a partnership with Ethena Labs, Donald Trump’s World Liberty Financial spent $250,000 USDC to acquire 231,726 ENA tokens just 20 minutes ago. This brings their total holdings to 741,681 ENA, purchased at an average price of ~$1.011, with an unrealized gain of $33,900.
Additionally, substantial whale activity has been detected. A newly created wallet, established 20 hours ago, has withdrawn 5.29 million ENA tokens from Binance at an average price of $1.12, totaling $5.92 million. The accumulation occurred as the token’s price dipped, suggesting strategic buying amid market fluctuations, reported Spot On Chain.
Partnership With World Liberty Financial
Additionally, Ethena Labs also officially announced its partnership with Donald Trump’s crypto project World Liberty Financial. The partnership seeks to improve USDe liquidity and increase user rewards across WLFI’s DeFi platforms.
The announcement mentions the submission of a governance proposal to incorporate Ethena’s sUSDe synthetic dollar as a core collateral asset in WLFI’s forthcoming Aave-based lending and borrowing platform. This is also another major reason behind today’s Ethena Price rally.
There’s been a strong demand for Ethena’s USDe synthetic dollar recently. Just over the last month, its market soared by nearly 100% shooting past $6 billion. As a result, of this strong growth USDe is now the third-largest stablecoin leaving behind the likes of DAI.
ENA Price Action Ahead
Over the last few weeks, the Ethena price has seen strong rejection at $1.2. Although it attempted a breakout above this, the bulls couldn’t sustain the momentum further. Thus, for the rally to continue, it is important that bulls should take the price above this resistance.
But considering the growth of its ecosystem, crypto market analysts are predicting much higher price targets of $10 and above for the altcoin. Market analyst CryptoELITES noted that ENA’s impressive growth appears to be only the beginning while setting ambitious price targets for the asset, projecting milestones at $5, $10, and $20 in the near future.
Bhushan Akolkar
Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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