The crypto market is currently witnessing the development of investment strategies. Institutional investors are now accumulating positions in emerging coins like Ethena (ENA).
On November 29, the on-chain analysis platform Nansen discovered that Pantera Capital was buying a large amount of ENA tokens. According to Nansen, Pantera Capital purchased ENA tokens worth 8 million USD. This institutional investor has been accumulating this coin over the past three weeks, according to Nansen's findings.
Source: Nansen
Maximizing Ethena accumulation
Ethena has outperformed major digital assets in recent months, reinforcing its position with investors. The price of ENA is currently up 135% over the past 30 days. Investors committed to Ethena's long-term vision are buying more tokens and maximizing their holdings.
On November 28, Arthur Hayes, co-founder of BitMEX, purchased 11.21 million ENA after selling all of his Aethir (ATH). Hayes made a large withdrawal of ENA from the Binance exchange, showing his increasing enthusiasm for this synthetic dollar protocol.
In the past week, Ethena has witnessed a significant increase in activity from large investors, impacting its market. The number of transactions over 100,000 USD has surged from 23 to 128, reflecting growing interest from 'whales'. This accumulation indicates that 'whales' are becoming more optimistic about the Ethena ecosystem.
Reasons why Ethena attracts interest
Ethena is a decentralized protocol running on the Ethereum blockchain to create synthetic dollars that do not rely on traditional banking systems. The ever-evolving DeFi landscape constantly craves innovative and reliable stablecoins. Ethena has positioned itself as a pioneer in the stablecoin era with its innovative synthetic stablecoin, USDe.
With its unique approach to generating profits, security, and stability, USDe is designed to address the limitations of traditional stablecoins. This stablecoin is leading a new direction in the DeFi space as an optimal choice for both institutional investors and individual users.
Recently, the cryptocurrency derivatives exchange Deribit announced plans to use USDe from Ethena as collateral starting from January 2025. This move by Deribit aims to enhance trading options by integrating USDe into its cross-collateral asset pool, providing customers with more flexible trading strategies. This integration reflects the increasing confidence in USDe as a stable and reliable cryptocurrency tool designed to maintain its value against the US dollar.
Despite facing issues such as negative funding rates, the supply of USDe remains strong at 2.84 billion USD, indicating strong demand. On November 19, USDe saw a massive inflow of 119 million USD in a single day, bringing the total inflow for the previous month to 1 billion USD, resulting in its current market capitalization of 2.02 billion USD. This indicates a trend of recovery and growth in the blockchain.
In September, Ethena Labs announced its new stablecoin project, UStb (USTB), developed in collaboration with Bitcoin investor BlackRock and digital securities platform Securitize.
