In a series of significant developments, $ENA, the native token of the rapidly growing DeFi platform Ethena, has seen a dramatic surge in both price and whale activity, indicating a bullish outlook for the token.
Over the past few days, a large whale has withdrawn millions of $ENA from Binance, signalling increased confidence in the asset as the price recovers to pre-crash levels.
Whale Pulls $3.83M as Price Recovers, $1.18M Profit
Spot On Chain recently reported that a whale withdrew 3.206 million $ENA, worth approximately $3.83 million, from Binance. This follows a similar withdrawal trend where, over the last four days, the same whale has pulled a total of 16.856 million $ENA, valued at $18.55 million at an average price of $1.10.
The price of $ENA has since risen by more than 6%, with the whale now sitting on a gain of $1.18 million. In a separate report, the same whale created a new wallet and withdrew another 5.29 million $ENA at an average price of $1.12, totalling $5.92 million. This accumulation indicates a clear bullish sentiment from the whale, suggesting that they are positioning themselves for further gains.
ENA’s Price Actions
As of now, $ENA is trading at $1.17, reflecting a nearly 30% increase in the past 24 hours. The token has also seen a 15% rise in the past week, and its global market capitalization has reached $3.43 billion. With trading volume up more than 24% in the last 24 hours, $ENA is gaining traction among investors. This price surge is largely attributed to Ethena’s announcement earlier this week regarding the launch of its new stablecoin.
The new stablecoin, USDtb, is designed to help stabilize Ethena’s flagship USDe token during periods of market downturns. The USDtb will maintain a steady $1 price and will hold 90% of its reserves in BUIDL, a tokenized money market fund created by asset management giant BlackRock and tokenization firm Securitize.
Ethena founder Guy Young explained that the platform saw a clear market opportunity to offer users a stablecoin with a different risk profile from USDe, without the need for them to leave Ethena’s ecosystem.
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This move comes at a time when the demand for stablecoin options has accelerated, with many DeFi users seeking safer, more stable alternatives.
Ethena’s Market Performance
Ethena’s rise as one of the fastest-growing DeFi platforms of 2024 has been impressive, with nearly $6 billion in user funds raised since its public launch earlier this year. This rapid growth is a clear indication that users are flocking to the platform, particularly due to its innovative approach to decentralized finance and stablecoins.
The increased whale activity on $ENA is another indicator of this optimism. Whales, often seen as market movers, are typically careful with their investments, and their large-scale withdrawals and accumulation suggest they foresee continued price appreciation.
In conclusion, the surge in $ENA’s price and the growing whale activity surrounding the token underscore a bright future for Ethena.
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