ENA, the native cryptocurrency of Ethereum-based synthetic dollar protocol Ethena, has surged by 15% in the last 24 hours, as its USDe stablecoin becomes the third-largest in the category after Tether’s USDT, and Circle’s USDC. On-chain data shows a massive 75% surge in USDe supply on Ethereum, over the past month, showing strong demand in the decentralized finance (DeFi) space. Ethena price is once again trading above $0.61 following today’s upside.
Ethena Price Rallies on USDe Stablecoin Boost
Ethena’s USDe stablecoin has seen a sharp rise in adoption, with supply growing 75% over the past month to reach $9.3 billion, according to data from DeFiLlama. The increase has pushed USDe past FDUSD to become the third-largest stablecoin by market capitalization, trailing only Tether (USDT) and USD Coin (USDC).
Over the past month, the USDe market cap has soared by a staggering 75%. Furthermore, the synthetic dollar protocol announced working on a USD-compliant stablecoin following the passing of the GENIUS Act last month.
Furthermore, the Ethena DeFi protocol is seeing a major boost, climbing to the sixth spot with total value locked (TVL) now crossing $9.47 billion. The protocol’s rapid growth is being driven by high yields and recent integrations, attracting a mix of risk-seeking DeFi users and more conservative stakers.
The Ethena price is already up by 140% over the past month, amid strong ecosystem growth. Today’s 15% bounce back gives investors hope of a recovery ahead following strong selling pressure last week. The daily trading volume for ENA is up 20% to more than $1.1 billion, showing bullish trader sentiment. As per the ENA price prediction data by CoinGape, the altcoin will continue its rally to $0.70 over the next month.
During July, the Ethena ecosystem saw massive USD inflows at $2.96 billion, up from $47 million in the previous month of June. Similarly, the platform fees surged to $36.5 million in July, up from $19.96 million in June.
ENA Token Unlocks on Investors’ Radar
Today’s Ethena price rally, despite $101.87 million in ENA token unlocks this week. Thus, investors should prepare for volatility moving ahead. As per the data from CryptoRank, Ethena has the biggest token unlocks this week, which might introduce some selling pressure.
On the other hand, crypto analyst Ali Martinez reported that “250 million Ethena $ENA have been sent to exchanges in the last two weeks!” This shows that investors look ahead to profit-booking after a 140% Ethena price rally in July. Last week, veteran investor Arthur Hayes dumped 7.76 million ENA coins, worth $4.62 million.
Bhushan Akolkar
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets.
He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.
Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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