Despite an overall pullback in the cryptocurrency market, Ethena's price surged 10% to $1.20 in the past 24 hours. This bullish momentum is driven by strong accumulation by ENA whales and the recent partnership with Donald Trump's cryptocurrency project, World Liberty Financial. Over the past week, whales have continuously increased their holdings in Ethena due to strong demand for its USDe synthetic dollar, pushing its market cap above $6 billion.
Ethena's price surged after collaborating with the Trump project
Despite a general crash in the cryptocurrency market, Ethena's price soared 10% earlier today to $1.20, with its daily trading volume skyrocketing by 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, driven by strong demand for USDe, ENA's gains have expanded to over 100%.
ENA token activity is very active, highlighting significant purchases and wallet movements. Just 20 minutes after announcing the partnership with Ethena Labs, Donald Trump's World Liberty Financial spent $250,000 USDC to purchase 231,726 ENA tokens. This brings their total holdings to 741,681 ENA, with an average purchase price of about $1.011, resulting in an unrealized profit of $33,900.
Source: Spot On Chain
Moreover, a significant amount of whale activity has also been detected. A new wallet established 20 hours ago has withdrawn 5.29 million ENA tokens from Binance at an average price of $1.12, totaling $5.92 million.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 during a price decline of the token, indicating strategic buying amidst market volatility.
Cooperating 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, only behind DAI and others.
Future price trends for 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 were unable to maintain further momentum. Therefore, 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 astonishing growth seems just to have begun, setting ambitious price targets for this asset, expecting to reach milestones of $5, $10, and $20 in the near future.