Here’s Why Ethena Price Surged 10% Despite Crypto Market Crash

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As a seasoned crypto analyst with over a decade of experience in this dynamic and volatile market, I’ve seen countless projects rise and fall, but Ethena seems to be bucking the trend amidst the current market correction. The recent collaboration with Donald Trump’s World Liberty Financial project has undeniably played a significant role in its 10% surge to $1.20 within the last 24 hours.

In stark contrast to the broader decline in the cryptocurrency market, Ethena’s price has unexpectedly soared by 10% to reach $1.2 within the past 24 hours. This impressive growth is largely due to significant hoarding of Ethena by ‘whales’ and a recent partnership with Donald Trump’s crypto project, World Liberty Financial. Over the last week or so, there has been an ongoing trend of ‘whale’ purchases for Ethena, as its USDe synthetic dollar experiences robust demand that surpasses the $6 billion market cap.

Ethena Price Surges Amid Collaboration with Donald Trump Project

Regardless of the broader downturn in the crypto market, Ethena’s price experienced a 10% increase to reach $1.20 earlier today. This surge was accompanied by an impressive 174% rise in its daily trading volume, which exceeded $1 billion. Data from Coinglass indicates a 20% boost in open interest, reaching $700 million, implying that traders are maintaining their bullish outlook on the altcoin. On a monthly scale, Ethena has seen its value escalate by over 100%, driven by robust demand for the USDe.

According to Spot On Chain, there’s been a lot going on with ENA tokens lately, including large transactions and wallet transfers. Just 20 minutes ago, World Liberty Financial (associated with Donald Trump) invested $250,000 in USDC to buy 231,726 ENA tokens. This purchase raises their total ENA holdings to 741,681 tokens, which they bought at an average price of around $1.011 each. This transaction has resulted in an unrealized profit of approximately $33,900 for World Liberty Financial.

Furthermore, there’s been a significant increase in whale activity. A wallet that was just made 20 hours ago has taken out approximately 5.29 million ENA tokens from Binance at an average cost of $1.12, which equals around $5.92 million. This large-scale purchase happened when the token’s price dropped, hinting at strategic buying during market volatility, according to Spot On Chain’s report.

Partnership With World Liberty Financial

Moreover, it’s been officially confirmed that Ethena Labs has teamed up with Donald Trump’s digital currency initiative, World Liberty Financial. This collaboration aims at enhancing the liquidity of USDe and boosting user incentives across the DeFi platforms operated by WLFI.

The announcement reveals a proposal for integrating Ethena’s stablecoin, sUSDe synthetic dollar, as a key collateral asset in WLFI’s upcoming Aave-powered lending and loaning system. This integration is one of the significant factors driving today’s surge in Ethena’s price.

There’s been a significant surge in interest for Ethena’s USDe synthetic dollar in recent times. In fact, its market value has skyrocketed by almost 100% over the past month, reaching approximately $6 billion. This impressive growth has catapulted USDe into the third-largest stablecoin position, surpassing cryptocurrencies like DAI.

ENA Price Action Ahead

Over the past few weeks, I’ve noticed that the Ethena price has faced considerable rejection at the $1.2 mark. Despite a brief attempt to surpass this barrier, the bullish momentum didn’t hold up. To keep the rally going, it’s crucial for the bulls to successfully push the price beyond this resistance level.

Given its rapidly expanding ecosystem, crypto market experts are anticipating price goals of $10 and more for this altcoin. Notably, analysts from CryptoELITES have observed ENA’s remarkable growth and set ambitious price targets, estimating significant milestones at $5, $10, and even $20 in the coming period.

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2024-12-19 11:05