Is It Too Late to Buy Ethena? ENA Price Soars After Binance Listing and This Other Coin is About to List on Exchanges
The newly-listed Ethena token (ENA) has surged 13% in 24 hours and 53% overall since listing on Binance on Tuesday.
ENA is a governance token for Ethena’s decentralized finance (DeFi) protocol. The protocol’s yield-earning dollar-pegged stablecoin USDe offers a staggering 35% APY.
Unlike its traditional rivals Tether (USDT) and Circle (USDC), USDe token is a s0-called “synthetic dollar,” able to generate yields by pairing ether liquid staking tokens with short ether (ETH) perpetual futures positions for collateral, in order to maintain its $1 price peg.
A mechanism called “delta hedging” ensures the stability of the coin. The technique involves offsetting the price change risk of the collateral assets with corresponding short futures positions.
USDe’s market cap has also exploded recently, and currently sits at a fraction short of $2 billion, making it the number two trending cryptocurrency on CoinMarketCap today with a $2.5 billion 24-hour trading volume.
According to valuation tracker Tracxn, Ethena Labs has raised over $20 million over two rounds of funding participated by Franklin Templeton, DragonFly, Kraken, Maelstrom, and others. BitMex co-founder Arthur Hayes was an angel investor in Ethena.
USDe supply $1,500,000,000@ethena_labs now 15% of global ETH open interest
Would be a shame if we launched BTC next week, don't you think? pic.twitter.com/Kw8qZRSids
— Ethena Labs (@ethena_labs) March 29, 2024
Over on ENA’s trading chart we can see a nearly 20% pullback from a post-launch high of about $1.25 on Tuesday. All told the coin’s value has doubled since it began its listing at roughly $0.64.
This morning, a short sharp buying spree drove ENA’s Relative Strength Index (RSI) to over 70, indicating overbought
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