Amidst the recent crypto market crash, where Bitcoin price closed at $65,000, approximately 10% lower than its all-time high of $73,750.07 recorded just 20 days prior, Ethena (ENA) made its debut on April 2, 2024. Despite the broader crypto market experiencing a downturn, ENA emerged as a standout performer, defying the prevailing market sentiment with its remarkable price surge. As the crypto landscape grappled with volatility, ENA’s trading commencement marked a significant event, prompting intrigue and speculation among investors and enthusiasts alike. As Ethena price experiences a notable upswing, it prompts the question of factors driving the surge.

Understanding Ethena (ENA)

Ethena is a synthetic dollar protocol on Ethereum, offering a crypto-based alternative to traditional banking. It includes the USDe synthetic dollar and the ‘Internet Bond’ savings instrument. USDe is stable, censorship-resistant, and backed by Ethereum collateral. The protocol uses delta hedging for stability. The ‘Internet Bond’ combines yield from Ethereum staking with funding from markets, acting as a dollar savings option for users in certain jurisdictions. This on-chain solution is transparent, scalable, and free to use across DeFi platforms.

Market Performance of Ethena Price

Ethena (ENA) demonstrated significant market activity within the past day. As of now, the token is priced at $0.8127, having experienced a surge of 18.19% over the past 24 hours. It has a market capitalization of approximately $1.18, ranking it at 86th place among the top 100 cryptocurrencies on CoinMarketCap.

ENA has had a significant trading volume, hitting around $2.7 billion in a 24-hour period. A volume-to-market cap ratio of 229.45% shows strong involvement and liquidity in the market. This facilitates the buying and selling of the cryptocurrency on an exchange at a price close to its actual value.

Out of a supply totaling 15 billion ENA, Ethena token makes up 9.5% of the circulating supply of 1.4 billion ENA.

In the last 24 hours, the token’s price has fluctuated between $0.5275 and $0.8987. ENA reached its highest point of $0.8987 just 10 hours ago, showing a significant increase of 55.59% from its lowest point of $0.5275, which was documented 21 hours ago.

Top Reasons Ethena Price is Soaring

The surge in ENA price has been contributed by various factors as we shall see below.

1. Strategic Airdrop and Early Adoption

Ethena Labs initiated a strategic airdrop, distributing 750 million ENA tokens to early adopters, constituting 5% of the total token supply. This bold move aimed to reward loyal supporters while rapidly increasing ENA’s market capitalization. As a result, Ethena quickly rose to become the fifth-largest stablecoin issuer by market capitalization, reaching a significant milestone in its journey.

The claim page for $ENA is now live:https://t.co/inUyUBQrzL

Please ensure you are using only this link and avoiding links posted anywhere else

This is the only claim link associated with @ethena_labs

— Ethena Labs (@ethena_labs) April 2, 2024

2. Successful Shard Campaign

Prior to the ENA token launch, Ethena Labs introduced the Shard Campaign, a points system designed to incentivize traders by offering future distribution of ENA in exchange for collateral. This campaign, which ran for six weeks, not only attracted participants but also provided them with the opportunity to cash out, further boosting ENA’s demand and value in the market.

3. Availability on Major Exchanges

ENA’s popularity skyrocketed due to its presence on major cryptocurrency exchanges like Binance, Bybit, and Kucoin. Listing on these platforms allowed ENA to reach a larger audience and attract more investors and traders who were interested in taking advantage of its potential.

4. Governance Structure and Decentralization

Ethena Labs positioned ENA as a core component of its governance structure, marking a significant step towards decentralization. The recent distribution of 5% of ENA tokens is part of a larger allocation aimed at ecosystem development, demonstrating the project’s commitment to fostering community engagement and growth in a decentralized manner.

5. Launch of “The Sats Campaign

April 2nd marked not only the ENA token’s airdrop but also the commencement of the second phase of Ethena’s incentives program, known as “The Sats Campaign.” By incorporating Bitcoin as collateral alongside Lido’s stETH, Ethena aims to tap into new markets and unlock additional growth opportunities. This strategic move is expected to expand the protocol’s capabilities and attract a wider range of investors, further driving ENA’s value upwards.

With immediate effect all USDe and sUSDe holders will begin accruing rewards for the Sats Campaign which will be reflected in the UI today https://t.co/VKVX287czx

— Ethena Labs (@ethena_labs) April 2, 2024

6. Binance Futures Promotion

The recent promotion introduced by Binance Futures is what led to the significant increase in the price of Ethena (ENA). This deal provides a profitable chance for new futures traders and those who refer them to earn ENA tokens. With a prize pool of 700,000 ENA available, it’s not surprising that many traders are eager to join in. Beginner futures traders may receive rewards for executing their initial futures transaction and hitting a certain total trading volume, while those who refer others can earn ENA tokens for each successful referral’s first futures trade. This offer encourages participation and boosts demand for ENA, resulting in a surge in its market price.

Conclusion

Ethena’s impressive rise during a volatile crypto market crash highlights its strength and opportunities in the constantly changing cryptocurrency environment. Despite encountering obstacles and uncertainties, ENA has become a symbol of hope, fueled by strategic efforts, effective endeavors, and a dedication to decentralization. The token’s future looks bright, with ongoing evolution and increased participation in the project. With its cutting-edge protocol and strategic roadmap, Ethena is ready to make a substantial impact on the DeFi industry, providing a credible option to traditional banking models and revolutionizing the financial sector. While investors and fans watch ENA’s progress closely, it is evident that Ethena’s journey is only starting, with infinite possibilities ahead

The post Ethena Price: Top Reasons Why is ENA Price Soaring? appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am