Ethena (ENA), the innovative synthetic U.S. dollar protocol operating on the Ethereum network, has experienced a remarkable surge, propelled by optimistic projections from a prominent crypto analyst foreseeing a potential 100x increase during the impending altcoin season.
With a notable uptick of 13.5% in the last 24 hours, ENA is currently valued at $0.90, inching closer to a market capitalization of $1.3 billion, solidifying its position as the 67th largest cryptocurrency.
Concurrently, daily trading volume has surged by 22.5%, reaching $285 million.
The surge in ENA’s value coincides with the insights shared by renowned crypto researcher Alex Wacy, who has hinted at the onset of an altcoin season, indicating potential upswings for selected altcoins, including Ethena, within the context of a $277.174 billion market cap.
Wacy’s estimations suggest that approximately 15% of altcoins could yield substantial returns, ranging from 10x to 100x, amidst the anticipated altcoin season.
One of the key indicators highlighted by Wacy is the consolidation of over $700 billion in TOTAL3, excluding Bitcoin (BTC) and Ethereum (ETH), serving as a bullish signal for the broader altcoin market.
In his analysis, Wacy states Ethena’s significance as a synthetic dollar protocol offering a crypto-native alternative to traditional banking via Internet bonds.
He also points out the forthcoming unlocking event for ENA scheduled for April 2025, alongside the observation of a familiar pattern on the weekly chart, typically preceding substantial growth.
This pattern, coupled with the ongoing altcoin season, suggests a potential swift rebound compared to projects launched during bearish market conditions.
In parallel developments, Ethena Labs, the entity behind the synthetic dollar protocol, has obtained approval for a USDeFRAX liquidity pool in collaboration with Frax Finance.
This strategic move aims to diversify the yield of the FRAX stablecoin, thereby enriching the ecosystem surrounding Ethena.
The approval of the Singularity Roadmap proposal has paved the way for the creation of a USDeFRAX pool on the decentralized finance (DeFi) stablecoin exchange Curve, featuring a $250 million ceiling.
However, amidst the prevailing optimism surrounding Ethena and its ecosystem, concerns have been raised by Fantom developer Andre Cronje regarding the inherent risks associated with the USDe peg system.
This system, reliant on collateralized positions to maintain parity with the U.S. dollar, mirrors the design of UST, which encountered challenges within Terra’s ecosystem.
