Despite the overall pullback in the cryptocurrency market, Ethena's price has surged 10% in the past 24 hours to $1.20. This bullish momentum stems from strong accumulation by ENA whales and the recent partnership with Donald Trump's cryptocurrency project World Liberty Financial. Over the past week, whales have been consistently accumulating Ethena due to strong demand for its USDe synthetic dollar, pushing its market cap above $6 billion.
After collaborating with Donald Trump's project, Ethena's price skyrocketed
Despite the general crash in the cryptocurrency market, Ethena's price surged 10% earlier today to $1.20, with its daily trading volume skyrocketing 174% to over $1 billion. Coinglass data shows that open contracts jumped 20% to $700 million, indicating that traders remain optimistic about this altcoin. On the monthly chart, ENA's increase has expanded to over 100% due to strong demand for USDe.
Spot On Chain reports that ENA token activity is very active, highlighting significant purchases and wallet movements. After announcing a partnership with Ethena Labs, Donald Trump's World Liberty Financial spent $250,000 USDC just 20 minutes ago to purchase 231,726 ENA tokens. This brought their total holdings to 741,681 ENA, with an average purchase price of about $1.011 and unrealized gains of $33,900.
In addition, a significant amount of whale activity has been detected. A newly established wallet just 20 hours ago withdrew 5.29 million ENA tokens from Binance at an average price of $1.12, totaling $5.92 million. According to Spot On Chain, this accumulation occurred as the token price fell, indicating strategic buying amidst market fluctuations.
Collaborating with World Liberty Financial
Additionally, Ethena Labs has officially announced a partnership with Donald Trump's cryptocurrency project World Liberty Financial. The collaboration aims to enhance the liquidity of USDe and increase user rewards on WLFI's DeFi platform.
The announcement mentioned that a governance proposal will be submitted to make Ethena's sUSDe synthetic dollar the core collateral asset for WLFI's upcoming Aave-based lending platform. This is also another major reason for Ethena's price increase today.
Recently, there has been strong demand for Ethena's USDe synthetic dollar. In just the past month, its market has surged nearly 100%, surpassing $6 billion. Due to this strong growth, USDe has now become the third-largest stablecoin, following DAI.
Future price trends of ENA
In recent weeks, Ethena's price has faced strong declines at the $1.20 level. Although it attempted to break through this level, bulls have been unable to maintain further momentum. Thus, to continue rising, bulls must push the price above this resistance level.
However, considering the growth of its ecosystem, cryptocurrency market analysts predict that the price target for this altcoin will be much higher, at $10 and above. Market analyst CryptoELITES points out that ENA's remarkable growth seems to have just begun, while setting ambitious price targets for the asset, expecting milestones of $5, $10, and $20 in the near future.