As a seasoned researcher with a knack for deciphering market trends, I’ve seen my fair share of cryptocurrency rollercoasters. However, the recent surge in Ethena (ENA) has left me quite impressed. With its roots in the USDe stablecoin, ENA’s price rally to $0.4676 is a testament to the power of innovative financial solutions and investor confidence.
Ethena token price rose for three consecutive days as sentiment in the crypto industry improved.
On July 24th’s peak price, Ethena (ENA), renowned for the USDe stablecoin, reached an all-time high of $0.4676. This represents a surge of more than 130% from its lowest point in 2021.
The rally happened because the Crypto Fear and Greed Index kept increasing, shifting from the “fear” zone of 38 to the “neutral” level of 50 during this past week.
The price of Bitcoin (BTC) has reached an impressive $67,000, while Ethereum (ETH) and Solana (SOL) have surged to approximately $2,650 and $160 each. Typically, alternative cryptocurrencies (altcoins) perform well when the value of Bitcoin increases and the overall sentiment in the crypto market becomes more optimistic.
simultaneous with Ethena’s rally, there has been a significant decrease in the likelihood that the USDe stablecoin might decouple this year; the probability has fallen to just 4%, which is a marked reduction from the 16% it was a couple of months back.
Just like Terras USD, USDe doesn’t tie its value to the U.S. dollar. Instead, it keeps its $1 parity through automated and programmatic adjustments on its underlying assets. It’s worth noting that the current circulating supply of USDe is valued at more than 2.4 billion dollars.
Unlike common stablecoins such as Tether and USD Coin, USDe offers returns to its users. As stated on their website, the Annual Percentage Yield (APY) for USDe is 8%, which is greater than what U.S. Treasury bonds currently offer.
Despite a decline in the total value locked within Ethena’s ecosystem, as indicated by the data, Ethena still experienced a rebound. From its year-to-date peak of $3.6 billion, the Total Value Locked (TVL) has dropped to $2.4 billion now.
Recently, the developers have taken significant steps forward. Just last week, they disclosed their intention to allocate $46 million from their reserve fund towards tokenized investments. Additionally, Ethena has secured support from both BlackRock and Securitize for its innovative stablecoin project, UStb.
Ethena price flips key resistance
The daily graph demonstrates that the ENA’s lowest point was at $0.20 in September, but it has since surged by more than 125%, reaching $0.462. It exceeded a significant resistance level at $0.4260, which marked its highest peak on Sept. 30 and also served as the neckline of the double-bottom formation.
The Evolution of the Internet (ENA) has surged above its 50-day moving average, and the Money Flow Index suggests an upward trend. Consequently, it is expected that the token price will keep ascending, with investors aiming for the significant resistance level at $0.5150 – a peak reached on July 24th.
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2024-10-15 18:11