Altcoins
Ethena (ENA) Advances 13.5% as Researcher Predicts 100x Growth in Altcoin Season
Ethena (ENA), the synthetic US dollar protocol built on the Ethereum network, has seen a significant rise as a renowned cryptocurrency researcher predicts a 100x increase during the highly anticipated altcoin season.
ENA is up 13.5% in the last 24 hours and is trading at $0.90 as of this writing. The asset’s market capitalization is approaching the $1.3 billion mark, making it the 67th largest cryptocurrency.
24 Hour ENA Price Chart | Source: CoinMarketCap
Likewise, Ethena’s daily trading volume increased by 22.5%, currently standing at $285 million.
The latest increase in the ENA token surge comes as renowned cryptocurrency researcher Alex Wacy sparked speculation about the start of altcoin season, flagging potential increases for select altcoins, including Ethena, with a market capitalization of 277.174 billion of dollars.
Looks like the Altseason is starting!
Only about 15% of altcoins will lead 10-100x in this hypergrowth.
Resource selection is more important than ever. One mistake and you’re out.
– How to position yourself
– Timing of profit taking
– 6 Altcoins that seem ready to go
🧵⬇️ pic.twitter.com/axmDK6rTua— AlΞx Wacy 🌐 (@wacy_time1) May 5, 2024
Wacy estimates that approximately 15% of altcoins could produce returns between 10x and 100x during this expected altcoin season.
Among the key indicators cited by Wacy is the consolidation of over $700 billion in TOTAL3, excluding Bitcoin (BTC) and Ethereum (ETH), which confirms a bullish trend.
TOTAL3 shows the total market capitalization of the 125 major cryptocurrencies, excluding BTC and ETH. This metric serves as an indicator of the willingness of the broader altcoin market to emerge from Bitcoin’s shadow.
In his analysis, Wacy highlights Ethena as a synthetic dollar protocol that provides a crypto-native alternative to conventional banking through Internet binding.
Furthermore, he notes that the next unlock event for ENA is expected in April 2025, while highlighting a familiar pattern observed on the weekly chart, which typically precedes significant growth. Given the ongoing altcoin season, the model is expected to lead to a faster rebound than projects launched in bearish market conditions.
Ethena Labs, the developer behind the synthetic dollar protocol, did this recently received approval for a USDeFRAX liquidity pool in collaboration with Frax Finance. The move aims to diversify the performance of the FRAX stablecoin, further enhancing the ecosystem surrounding Ethena.
Additionally, the approval of the Singularity Roadmap proposal paved the way for the creation of a USDeFRAX pool on the decentralized finance (DeFi) stablecoin trading curve, capped at $250 million.
However, amidst the optimism surrounding Ethena and its ecosystem, concerns have been raised from Fantom developer Andre Cronje regarding the risks associated with the USDe peg system. The system relies on collateralized positions to maintain parity with the US dollar, similar to the UST project, which ultimately led to challenges to the Earth’s ecosystem.