Altcoins
Ethena (ENA) jumps 13.5% as researcher predicts 100x growth during altcoin season
Ethena (ENA), the synthetic US dollar protocol built on the Ethereum network, has seen a significant rise as a renowned crypto researcher predicts a 100x surge during an expected altcoin season.
ENA is up 13.5% in the last 24 hours and is trading at $0.90 at the time of writing. The asset’s market capitalization is approaching the $1.3 billion mark, making it the 67th largest cryptocurrency.
ENA 24 hour price chart | Source: CoinMarketCap
Likewise, Ethena’s daily trading volume jumped 22.5%, currently hovering at $285 million.
The latest surge in the ENA token rally comes as renowned crypto researcher Alex Wacy sparked speculation about the start of altcoin season, signaling potential surges for some altcoins, including Ethena, amid a market cap of 277.174 billion dollars.
The Altseason seems to be starting!
Only about 15% of altcoins will bring 10 to 100 times this hyper growth.
Asset selection is more important than ever. One mistake and you’re out.
– How to position yourself
– Profit taking calendar
– 6 Altcoins That Look Ready to Go
🧵⬇️ pic.twitter.com/axmDK6rTua– AlΞx Wacy 🌐 (@wacy_time1) May 5, 2024
Wacy estimates that around 15% of altcoins could generate returns ranging from 10x to 100x during this expected altcoin season.
Among the key indicators cited by Wacy is the consolidation of more than $700 billion in TOTAL3, excluding Bitcoin (BTC) and Ethereum (ETH), which confirms an upward trend.
TOTAL3 shows the total market capitalization of the top 125 cryptocurrencies, excluding BTC and ETH. This measure serves as an indicator of the broader altcoin market’s desire to emerge from Bitcoin’s shadow.
In his analysis, Wacy presents Ethena as a synthetic dollar protocol that offers a crypto-native alternative to conventional banking via internet bonds.
Additionally, it notes that the next ENA unlock event is scheduled for April 2025, while highlighting a familiar trend seen on the weekly chart, usually preceding significant growth. Given the current altcoin season, this trend is expected to lead to a faster rebound than projects launched during bear market conditions.
Ethena Labs, the developer behind the synthetic dollar protocol, recently received approval for a USDeFRAX liquidity pool in collaboration with Frax Finance. This move aims to diversify the yield of the FRAX stablecoin, thereby improving 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, with a cap of 250 million of dollars.
However, amid the optimism surrounding Ethena and its ecosystem, concerns have been raised by 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 design of UST, which ultimately led to challenges for Terra’s ecosystem.