- ENA has greater than doubled in worth since its airdrop final week
- Aggressive stockpiling appeared to have offset the potential deposit-induced promoting strain
ENA, the native token of decentralized finance (DeFi) protocol Ethena Labs, has turn into the brand new speaking level of the crypto-market. Whereas its airdrop made information, what has additionally saved ENA within the headlines is its value appreciation on the charts.
Buyers scoop up ENA
At press time, the token was exchanging palms at $1.34. In doing so, it greater than doubled in worth since 5% of its complete provide was airdropped to eligible holders of the ecosystem’s so-called artificial greenback, USDe.
In actual fact, in line with Web3 data graph protocol OxScope. institutional traders have been steadily accumulating the tokens because the launch and the tempo of accumulation hasn’t dipped but. This aggressive stockpiling appears to have offset the promoting strain because of latest deposits on exchanges. Right here, it’s price noting how withdrawals have surged particularly dramatically during the last two days.
Supply: OxScope
The lure of upper returns
The surge in withdrawals adopted the announcement of “Season 2” by Ethena Labs, which affords increased rewards for staking ENA with the protocol.
Customers who stake a minimal of fifty% ENA relative to their USDe holdings would obtain a 50% increase on complete rewards earned via USDe positions.
Hoping to capitalize on the returns, traders plugged their ENA tokens out of exchanges to produce them for staking.
What subsequent for ENA?
ENA has additionally been making waves within the speculative market. In accordance with AMBCrypto’s evaluation of Coinglass’ knowledge, the Open Curiosity (OI) in ENA Futures surged to $372 million at press time, indicating a better variety of bets to revenue from its future value motion.
Supply: Coinglass
Lifelike to not, right here’s ENA’s market cap in BTC phrases
Greater than 50% of the positions gave the impression to be gunning for ENA’s value improve, as evidenced by the Longs/Shorts Ratio. It is a signal that merchants are assured that the bullish momentum will maintain itself.
Nonetheless, at press time, the social frenzy across the coin was tapering, as seen by the dip in discussions on prime crypto-focused social teams. This might impression the participation of retail traders, a lot of whom are drawn to cryptos because of social hype.
Supply: Santimen
