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Ethena (ENA), the synthetic U.S. dollar protocol built on the Ethereum network, recorded a significant surge as a renowned crypto researcher predicts a 100x rise during an anticipated altcoin season.
ENA is up 13.5% in the past 24 hours and is trading at $0.90 at the time of writing. The asset’s market cap is approaching the $1.3 billion mark, making it the 67th-largest cryptocurrency.
Quite similarly, Ethena’s daily trading volume surged by 22.5%, currently hovering at $285 million.
The latest uptick in the surge of ENA tokens comes as renowned crypto researcher Alex Wacy has ignited speculation about the beginning of the altcoin season, signaling potential surges for select altcoins, including Ethena, amidst a $277.174 billion market cap.
Altseason seems to be starting!
— AlΞx Wacy 🌐 (@wacy_time1) May 5, 2024
Only ~15% of altcoins will bring 10-100x in this hyper growth.
Asset selection matters more than ever. One slip-up, and you're out.
– How to position yourself
– Profit-taking timing
– 6 Altcoins that look ready to go
🧵⬇️ pic.twitter.com/axmDK6rTua
Wacy estimates that approximately 15% of altcoins could yield returns ranging from 10x to 100x during this anticipated altcoin season.
Among the key indicators cited by Wacy is the consolidation of over $700 billion in TOTAL3, excluding Bitcoin (BTC) and Ethereum (ETH), which serves as a confirmation of a bullish trend.
TOTAL3 shows the total market capitalization of the top-125 cryptocurrencies, excluding BTC and ETH. This metric acts as a gauge for the broader altcoin market’s readiness to emerge from the shadow of Bitcoin.
In his analysis, Wacy highlights Ethena as a synthetic dollar protocol that provides a crypto-native alternative to conventional banking through the Internet bond.
Moreover, he notes that the next unlocking event for ENA is scheduled for April 2025 while emphasizing a familiar pattern observed on the weekly chart, typically preceding significant growth. Given the ongoing altcoin season, the pattern is anticipated to lead to a swifter rebound compared to projects launched during bearish market conditions.
Ethena Labs, the developer behind the synthetic dollar protocol, has recently received approval for a USDeFRAX liquidity pool in collaboration with Frax Finance. The move aims to diversify the yield of the FRAX stablecoin, further enhancing the ecosystem surrounding Ethena.
Additionally, 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, with a $250 million ceiling.
However, amidst the optimism surrounding Ethena and its ecosystem, concerns have been raised by Fantom developer Andre Cronje regarding the risks associated with the USDe peg system. The system relies on collateralized positions to maintain parity with the U.S. dollar, similar to the design of UST, which ultimately led to challenges for Terra’s ecosystem.