Researcher predicts altcoin season to drive 100x growth for Ethena (ENA), leading to a remarkable 13.5% surge.
Ethena (ENA), the synthetic U.S. dollar protocol built on the Ethereum network, experienced a significant surge after a well-known crypto researcher predicted a 100x rise during the upcoming altcoin season.
At the time of writing, ENA is up 13.5% in the past 24 hours and is trading at $0.90. Its market cap is approaching $1.3 billion, making it the 67th-largest cryptocurrency.
Similarly, Ethena’s daily trading volume has surged by 22.5%, reaching $285 million.
The recent increase in ENA tokens can be attributed to crypto researcher Alex Wacy’s speculation about the beginning of the altcoin season. Wacy believes that select altcoins, including Ethena, could experience significant surges during this period, which is marked by a $277.174 billion market cap.
Wacy estimates that around 15% of altcoins have the potential to yield returns ranging from 10x to 100x during the altcoin season. One of the key indicators he cites is the consolidation of over $700 billion in TOTAL3, excluding Bitcoin (BTC) and Ethereum (ETH), which confirms a bullish trend.
TOTAL3 represents the total market capitalization of the top-125 cryptocurrencies, excluding BTC and ETH. This metric serves as a gauge for the altcoin market’s readiness to break free from Bitcoin’s dominance.
In his analysis, Wacy highlights Ethena as a synthetic dollar protocol that offers a crypto-native alternative to traditional banking through the Internet bond.
Furthermore, Wacy emphasizes that the next unlocking event for ENA is scheduled for April 2025. He also points out a familiar pattern observed on the weekly chart, which typically precedes significant growth. Given the current altcoin season, this pattern is expected to lead to a faster rebound compared to projects launched during bearish market conditions.
Ethena Labs, the developer behind the synthetic dollar protocol, recently received approval for a USDeFRAX liquidity pool in collaboration with Frax Finance. This move aims to diversify the yield of the FRAX stablecoin and further strengthen 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 maximum limit of $250 million.
However, 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 caused challenges for Terra’s ecosystem.
All in all, Ethena’s recent surge and the developments in its ecosystem have brought both optimism and some concerns to the forefront.
