A must read before flying! Who is the new coin ENA? What is its future potential?
This project is undoubtedly a shining star in recent times. It is involved in the field of stable coins, and the launch of the USDE project is eye-catching. The annualized return of holding USDE is as high as 35%. It uses the CDP arbitrage mechanism to realize basis trading. This innovative model is eye-catching.
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What is even more striking is the background of its investors. Not only is it fully supported by industry giants such as Binance, OK, and Kraken, its founder Guy Young is also a legend on Wall Street. He has accumulated more than 20 years of experience in top financial institutions such as Morgan Stanley, Goldman Sachs, and Citadel.
Such a team configuration undoubtedly laid a solid foundation for the success of the project.
So, how is this 35% annualized return achieved? To put it simply, the project team builds an investment portfolio, uses contracts to short Ethereum to charge long funding rates, and at the same time uses spot Ethereum for liquidity staking to earn income. Such a strategy gives the project particularly considerable room for development in the bull market.
At what price should we start?
The circulation of ENA is 15 billion. If calculated at a price of one cent, its market value will reach 1.5 billion; while a price of two cents corresponds to a market value of 3 billion. Compared with similar stablecoin project Maker's Dai, ENA's USDE issuance is smaller, but Maker's total market value has reached US$4 billion. Therefore, it is conservatively estimated that the market value of ENA is expected to reach 1.5 billion US dollars, or 0.1u.
However, considering the growth trend and market prospects of ENA, its real market price is expected to far exceed 0.1u. Investment is not only about the current value of the project, but also about expectations for the future. According to the current development trend, ENA's market value is expected to reach a level of US$4 billion equivalent to Maker.
Therefore, it is attractive to buy in the price range below 0.2 or even 0.3u. Of course, the specific timing of purchase still needs to be judged based on market conditions. The current OTC price of ENA is 0.6u, corresponding to a market value of 9 billion. This price is slightly high, and the short-term profit margin may be limited, and the risk is relatively high.
If the opening price is too high, we don’t have to rush to buy it. You can wait patiently for the market to correct before considering buying. Projects like ETHFi have experienced a process of highs and lows at the beginning of the market, so I only informed everyone on the 19th, and then they experienced explosive growth, and the fans who kept up with them had already eaten up the meat. So staying patient and rational is key.
In addition, the ENA project also has ample room for speculation in the future. For example, Binance has been looking for new stablecoin projects to enrich its currency selection after the withdrawal of BUSD. If USDE can be adopted by Binance, its price is expected to reach new highs. In addition, the project team may also learn from the models of Maker or TruFi and launch similar RWA products to further increase valuations. These potential development prospects provide investors with broad imagination.
Of course, we also need to be aware of the risks of investment. For example, during a bear market, the funding rate of the Ethereum contract may become negative, which will affect the project's arbitrage ability and lead to a decline in returns. But like all investments, bear markets are part of the market cycle. We need to remain calm and rational in the face of market transitions between bull and bear.
Overall, the ENA project has high growth potential. The key to profitability lies in whether we can start at a lower opening price. However, the level of the opening price is often affected by various factors such as market sentiment and capital flows, so we need to remain patient and confident and wait for the right time. Holding BNB at the same time is also a good choice. After all, mining will never lose money. $BNB
In this market full of variables, we must not only see the potential of the project but also be wary of potential risks. Only by staying rational and calm can you go further in the currency circle. I am Xianyu. If you don’t know how to operate it and are still confused, please pay attention and check the top page! This bull market will explode with more 100x coins. Next, I will announce the next 10x coin password during the Bitcoin halving in the area! Guessing is worse than being sure! #ENA
