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Ethena will see an unlock of 53.6 Million in June while ENA is currently trading near $0.8
Ethena is a synthetic dollar protocol built on the Ethereum chain. It will provide a crypto native solution for money that is not reliant on the traditional banking infrastructure. It is globally accessible dollar denominated saving instruments “The internet Bond”. The platform provides a scalable solution for money achieved by delta hedging the Ethereum and Bitcoin Collateral.
Ethena synthetic dollar USDe is fully backed and is supported through the use of delta hedging derivatives positions against protocol-held collateral. Meanwhile, the platform does not use any material leverage to margin the delta hedging derivatives position beyond the natural state. Let’s have a look towards the onchain and price action activity of the protocol.
Will The Declining Fee Collection Be A Hindrance For Ethena Growth?
Ethena platform has gained significant popularity since its launch. ENA is getting noticed by traders – it has a total of 38499 holders as per the data provided by Etherscan; 320,438 trasnfers have been executed since inception. If we look at the address by the amount holded by them than 76.6% of the address owns ranging from $0-$1k. The address above the $100k+ ENA are just 0.54%.
Ethena has a TVL of $2.3 Billion and is currently observing a stagnation from the past few months. If we look at the annualized fees of the platform then it has reached the highs of $206 Million. The platform revenue is also declining steadily on a daily basis and is currently at $3k.
Ethena has a median APY of 12.2% with a negative USD inflows to the platform.Meanwhile, the number of developers and developers commit is also very low for this platform. The total staked portion of the ENA has also been taking a hit and has reached to 13% as per the data provided by Dune analytics.
Is ENA Price Ready To Surge Above The Mark Of $1?
Ethena has a market cap of $1.1 Billion with just 9.5% circulating supply in the market. The digital asset price has observed a decline of 25% in the volume. Ethena is currently ranked 69th as per their market cap. ENA is currently trading near $0.78 with a drop of 8% in the intraday session.
ENA is currently trading below the 50 and 100 EMAs which is acting as resistance for the price. The upside trend of ENA can see a halt near the value of $1. Meanwhile, the support of the asset price can be observed near $0.6.
The RSI of ENA is near 45 hinting its presence in the neutral zone. The overall sentiment of the indicator is bearish. Meanwhile, the MACD of the asset price also hints towards a consolidation.
Conclusion
Ethena will see a token unlock of 53 Million in June which can push the selling pressure. Meanwhile,the platform is seeing a stagnation in TVL and overall active address. ENA token price is currently in a consolidation but can see a new high in the future.
Disclaimer
The views and opinions stated by the author or any other person named in this article are for informational purposes only and do not constitute financial, investment, or other advice