The supply of the USDe stablecoin has doubled, which is pushing the price of ENA up and it looks like it could rise even further.
Ethena’s token ENA rose 34% over the weekend and reached $0.85 on Monday, the highest since January.
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Driving Ethena (ENA)?
One reason for the price of ENA to go up was that last Friday a Golden Cross was formed on its daily chart, which trading logs consider a bullish signal.
But this was not the only reason. In the last one month, the supply of Ethena’s synthetic stablecoin USDe doubled to $10.3 billion. In this way, USDe left FDUSD behind and became the third largest stablecoin in market supply, only smaller than USDT and USDC.
Due to the arrival of new money of $2.96 billion in July, Ethena’s Total Value Locked also reached $10.46 billion, which brought it to the sixth position among the entire DeFi protocols.
What’s Next for Ethena ENA Price Surges?
On the weekly chart, Ethena ENA Price Surges seems to be completing its double bottom pattern. If the price breaks above $1.10–$1.20, it could end a long decline and start a rally towards $2.40.
On the daily chart, ENA is still moving higher after the bullish Golden Cross on August 8. The MACD histogram is positive and is rising, which shows strong upward momentum.
But the RSI is around 75.6, which means the price is overbought. This means there could be a chance of a slight pullback or a stop near $0.75 in the short term.
Why This Matters
Ethena price movement shows that people are trusting stablecoin-based DeFi projects more, and they are becoming increasingly popular in the crypto world.
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People Also Asked:
What is Ethena?
Ethena is a DeFi (Decentralized Finance) project built on the Ethereum blockchain. It creates a synthetic stablecoin called USDe. Its goal is to provide a stablecoin that is crypto-based, easy to scale, and keeps its value stable without relying on traditional banks.
What is ENA token?
ENA is the main governance token of Ethena. Its holders can vote on important decisions of the project, such as protocol updates or rule changes. Sometimes this token can also be used for rewards or incentives, depending on how Ethena sets its governance in the future.
How is Ethena’s stablecoin different from others?
The biggest difference of Ethena is that it runs on a pure crypto-native system. Other stablecoins like USDT or USDC are bank-backed, but USDe uses decentralized assets and automated hedging strategies. This reduces dependence on central companies, and the whole system follows the principles of transparency and decentralization of DeFi.
