Nov 8, 2024
6thTrade
Ethena’s native token, ENA, has seen a notable 30% spike, reaching $0.51 as a proposal for a fee-sharing model draws attention from investors. The proposal, introduced by market maker Wintermute, suggests a shift that would allocate a portion of Ethena’s revenue to sENA holders, allowing them to benefit directly from platform fees. This potential move is driving strong interest and anticipation around ENA.
Wintermute Proposes Fee Switch for ENA Holders
Wintermute recently posted a governance proposal on Ethena’s forum, aiming to activate a fee-sharing mechanism for ENA holders. According to the proposal, Ethena’s protocol has generated substantial revenue, but its staked governance token holders (sENA) have yet to benefit directly from these earnings. Wintermute’s proposal suggests allocating a share of future protocol revenue to sENA holders to better align them with the platform's growth and incentivize ongoing support.
The proposal specifies that revenue allocation will depend on certain criteria, such as reaching target levels of USDe circulation and protocol revenue, creating a pathway for sENA holders to participate more fully in Ethena’s success.
ENA Rallies as Proposal Gains Traction
The buzz around Ethena’s fee switch proposal has fueled ENA’s price rally, with a 30% increase making it one of the top performers in the market over the past day. This rally has been accompanied by a substantial surge in trading volume, which climbed 61% to reach $482 million in the last 24 hours—a strong indicator of increased interest and support for ENA.
Open interest (OI) for ENA has also spiked by 54% within the same period, signaling that new market positions are being taken up as investors rally behind the token. A rise in open interest during a price increase generally suggests new capital inflows and growing market confidence, reinforcing the strength behind ENA’s current uptrend.
ENA Price Forecast: Aiming for Higher Gains
Trading at $0.51, ENA has successfully moved past the critical $0.47 resistance level, which, if maintained as a support, could propel the token to new highs around $0.70. This bullish scenario, however, hinges on whether ENA can hold above $0.47. If this level fails to act as support, the token could potentially retrace to $0.32.
With active discussions around the fee-sharing proposal and growing market interest, ENA presents a compelling opportunity for investors eyeing potential gains. The proposal’s successful implementation could solidify ENA’s rally and drive further demand as Ethena aligns token holders with its growth trajectory.
Disclaimer: The content of this article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile and may lead to substantial financial loss. Always perform your own research and consult a qualified financial advisor before making any investment decisions. The opinions expressed are solely those of the author and do not represent the views of the publisher or its affiliates. Investing in cryptocurrencies involves inherent risks, and past performance is not a reliable indicator of future results. Please exercise caution.
