Ethena (ENA) price has done well as investors cheered the network’s growth. The token has soared by more than 125% from its lowest level this year. This increase has boosted its total market cap to over $1.6 billion, making it one of the biggest players in the crypto industry.
Ethena ecosystem is growing
Ethena has become one of the fastest-growing ecosystems in the blockchain industry. Data by DeFi Llama shows that the network’s total value locked (TVL) has jumped to over $2.075 billion. This growth makes it the 18th biggest player in the DeFi industry.
Data shows that the network is making substantial amounts of money. According to TokenTerminal, Ethena’s fees have jumped to over $40 million this year. This makes it the eleventh most profitable platform in the blockchain industry this year.
Ethena has overtaken some of the most notable networks like Base, Convex Finance, Compound, Arbitrum, PancakeSwap, and Trader Joe. Only networks like Ethereum, Tron, Uniswap, and Bitcoin are doing better. This performance explains why the ENA token price did well shortly after going public.
For starters, Ethena is a disruptor in the blockchain industry. The developers have created a synthetic dollar that trades at a 1:1 ratio against the US dollar. Holders of the sUSDe asset are now earning a 37% annual return, which is higher than what US government bonds are offering.
The uSDe asset is backed by a basket of financial assets like Tether, Ethereum, and ETH LSTs. The custodians of these assets are companies like Copper, Cobo, and CEFFU. These assets help to ensure that the token maintains its peg.
Ethena (ENA) price forecast
Ethena price surged to a high of $1.3165 shortly after the airdrop on April 3rd. It then retreated sharply to a low of $0.8637 on Friday as many investors took profits and as the crypto fear and greed index pulled back. ENA price has now recovered slightly to $1.1575 as the Relative Strength Index (RSI) has retreated below the neutral point.
There are signs that Ethena has formed a double-top pattern whose neckline is at $0.8637. Therefore, there is a likelihood that the token will remain on edge in the next few days. This volatility could see it drop below the key support at $1.0.
In the long term, however, the Ethena token will likely rebound and zoom above the all-time high of $1.3164. A break above this level will see it jump to $1.50.
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