- ENA has more than doubled in value since its airdrop last week
- Aggressive stockpiling seemed to have offset the potential deposit-induced selling pressure
In simple terms, Ethana Labs’ native token, ENA, has gained significant attention in the cryptocurrency world. The buzz surrounding it started with its airdrop announcement but was further fueled by its price surge on cryptocurrency exchanges.
Investors scoop up ENA
Currently, the token is being traded for $1.34 apiece. This represents over double its worth for those who received 5% of its total supply as part of an airdrop, which was given to eligible holders of USDe, a synthetic dollar within the ecosystem.
Institutional investors have been buying up tokens in large quantities since their launch, as indicated by OxScope’s Web3 knowledge graph protocol. This buying trend has remained strong and even intensified, counteracting any selling pressure caused by recent deposits on exchanges. However, it’s important to mention that there has been a significant increase in token withdrawals, particularly over the last two days.
The lure of higher returns
After Ethena Labs declared the launch of “Season 2,” there was a significant increase in users withdrawing their funds, attracted by the increased incentives for staking ENA within the protocol.
Those with ENA making up at least half of their USDe asset balance will enjoy a 50% increase in overall rewards gained from their USDe investments.
Investors aim to maximize their earnings by withdrawing their ENA tokens from exchanges for staking purposes instead.
What next for ENA?
The digital currency ENA has gained attention in the investment world as well. Based on Coinglass’ data analyzed by AMBCrypto, there was a significant increase in Open Interest (OI) for ENA Futures contracts, reaching $372 million at the current moment. This suggests that a larger number of investors are placing wagers on potential price movements in ENA.
Realistic to not, here’s ENA’s market cap in BTC terms
Approximately half of the trading positions indicated a strong belief that ENA’s price would rise based on the Longs/Shorts Ratio, suggesting optimism among traders about the continuation of the bullish trend.
At the moment of publication, the excitement surrounding the digital coin was noticeably decreasing based on a drop in crypto-related conversations among prominent online communities. This decline in social buzz might influence the involvement of individual investors who tend to be attracted to cryptocurrencies due to the social hype.
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2024-04-11 04:08