ENA Rally: Ethereum-based Synthetic Dollar Protocol Ethena's Native Cryptocurrency Soars

ENA, the native cryptocurrency of the Ethereum-based synthetic dollar protocol Ethena, has rallied another 20% in the last 24 hours shooting all the way to $1.40. With the current Ethena(ENA) price rally, the altcoin has managed to quickly become a $2 billion asset class in a week’s time. Also, ENA’s daily trading volume has surged by 66% all the way to $1.4 billion.
Ethena Labs Increases Rewards by 50%. Ethena Labs has unveiled a substantial increase in rewards for its users under its “season 2” initiative. The platform is boosting rewards by 50% for select users who opt to lock in their ENA tokens for a minimum of seven days. Users who lock at least 50% of their ENA relative to their USDe balance, Ethena’s yield-earning stablecoin, will qualify for the enhanced reward boost.
This move aims to encourage user engagement and fortify the platform’s ecosystem. Initially, the ENA lock cap is set at $200 million, with potential adjustments in the future. However, tokens allocated to the team and investors, which are subject to vesting schedules, will not be eligible for the ENA lock. As reported by CoinGape, Ethena has also hedged $500 million in Bitcoin across multiple exchanges while gearing up for Bitcoin halving.
Furthermore, Ethena Labs secured approval to establish a USDeFRAX liquidity pool in collaboration with Frax Finance, aimed at broadening the yield offerings of the FRAX stablecoin. Furthermore, the Singularity Roadmap proposal put forth by Ethena Labs has been given the go-ahead. This development allows the protocols to institute a USDeFRAX Pool on Curve, a decentralized finance (DeFi) stablecoin exchange, with a cap of $250 million.
The newly introduced ENA token remains on a bullish trajectory, supported by a dominant trendline evident in the 1-hour chart. Recently, the ENA price surged past the resistance level at $1.20, indicating a significant breakthrough.
As a result of this breakout, the Ethana Labs token is edging closer to reaching a market cap of $2 billion, showcasing a remarkable 371% surge from its initial price of $0.29. Based on Fibonacci levels, the ongoing rally could potentially reach the $1.76 mark. However, with a broader market recovery, the altcoin may target the $2.67 threshold. The uptrend is further reinforced by the RSI line entering the overbought territory, indicating robust momentum in the upward trend.