Ethena Price jumped six consecutive days and reached the highest level since March as the inflow into the ecosystem and whale accumulation continued.
Ethena (ENA) Token rose to a highlight of $ 0.4617, an increase of 110% compared to the lowest level this year. This increase, which took place in a large volume environment, pushed its market capitalization to almost $ 3 billion.
The growth of Ethena took place when investors continued to assign their capital to his algorithmic stablecoins. Defi Lama Data shows that the total value in its platform rose to more than $ 6.17 billion and the previous all times of $ 6.1 billion crossed.
Most of these assets are in Usde, the algorithmic stablecoin that has more than $ 6 billion. The remaining funds are located in Ethena Labs USDTB, which has more than $ 159 million in assets.
The Usde assets jumped when the annual percentage return crossed the 10% milestone for the first time this year. This makes it a more yield -generating active compared to other cryptocurrencies.
Nevertheless, it is unclear whether the Usde Stablecoin in the US will be offered after President Donald Trump has signed the Genius ACT In the law on Friday.
One of the core provisions of the law is that all Stablecoins offered in the US must be supported 1: 1 with US dollars and other liquid assets such as government bonds.
This assets do not support the Usde of Ethena. Instead, just like the collapsed Terra USD, the Stablecoin uses a Delta-neutral algorithmic strategy to maintain its price of $ 1. It works by ensuring that the collateral is linked to an equivalent short position of a perpetual contract.
If the Usde falls under $ 1, arbitrators can benefit by returning or exchanging and pushing it back to $ 1. The Susde then generates proceeds by a combination of staking and financing speed of the delta-neutral strategy.
The ENA price is also increasing while whales keep buying. Nansen Data shows that whales contain 43.6 million ENA tokens, an increase of 14.6% compared to the last 30 days, while the exchangekaldi have fallen to 7.27 billion.
Ethena Price Analysis
The daily graph indicates that the ENA price has experienced a strong recovery in recent days. It crossed the important resistance level at $ 0.4615, the highest swing on 14 May, which confirms that bulls are in control.
The price of Ethena is now aimed at a movement above the racement level of 23.6% at $ 0.4841. The exponential advancing averages of 50 days and 100 days are also approaching their crossover.
That is why token will probably continue to rise because bulls focus on the 50% retro level at $ 0.7758, which is about 70% above the current level.
