The price of Ethena’s native token, ENA, shot up by an astounding 18% in response to rumours of a rise in staking activity by whales. Whales have been staking more in the Ethena ecosystem in recent times, a calculated action that has recently caused the price of ENA to rise.
Through staking, a user can receive rewards like extra tokens or a cut of transaction fees in exchange for locking up a particular amount of Bitcoin in a smart contract for a predetermined duration. Whales that stake their ENA tokens gain passive income in the form of staking rewards in addition to helping to maintain the network’s security and stability.
In 19 hours from today, five whales have transferred 17.04 million units of ENA tokens, valued at approximately $22.77 million from the Binance exchange, staking it with Ethena Labs. The Ethena community formally announced this huge withdrawal activity on April 8, 2024.
More Investments Expected from Investors, Pair Comparison Begins
The platform incentivizes users to lock their USDe holdings in ENA, lowering the amount of USDe tokens in circulation and raising demand and ENA’s price. The platform’s growth and acceptance are expected to be further supported by the release of new awards and incentives for staking ENA tokens, which are expected to draw more users and liquidity.
As seen today, the ENA – MXN conversion pair is at $20.6 and has dropped by 3.67 in 24 hours. The positive movement in the price of ENA has been linked to its 79.23% 30-day price increase. The second trading conversion: ENA – VES is currently trading at $44.99, a 1.06% drop from the previous day. Meanwhile, the conversion rate for ENA – MXN as of April 9 is $20.26, a 3.67% drop from yesterday.
Ex BitMEX CEO Linked to ENA Token Positive Performance
The continued support of industry pioneers like Arthur Hayes, the ex-CEO and founder of BitMEX, has been linked to the growing performance of the ENA token. Hayes posted on X about the token after it was launched on the Binance exchange on April 3, 2024, predicting that the price of ENA tokens would rise to $10 over time.
Hayes made this post when ENA was trading at $0.72 before pushing up by 85% within a week. Hayes has been known for making accurate predictions on different cryptocurrencies, as seen in the events of Bonk (BONK), Bitcoin (BTC), SLERF, Dowifhat (WIF), and Filecoin (FILE).
Ethena Labs had announced that should holders of ENA lock at lockout 50% of their USDe in ENA, they will have their rewards increased by 50% and also get considerable rewards each day. Data from Lookonchain, a Blockchain analytics company, revealed that three wallets belonging to ENA whales transferred 11.9 million units of ENA token, valued at $15.23 million (as at the time of the transaction) from Binance exchange for staking.
Whales Performs Huge Transfers, Woos Ethena Staking Program
Two whale wallets, 0x29f and 0xd38, transferred 8.592 million units of ENA tokens, worth approximately $11.8 million, to the Binance exchange at $1.377 per token. Ethena Labs, while announcing its lock-in program, wrote on its blog that investors and teams at Ethena that are locked on the vesting period are not eligible to participate in the ENA lock reward program.
The initial locked ENA was $200 million and will be increased later. Ethena has developed a strategy that requires buying and shorting Bitcoin at the same time to generate a cash trade transaction each year. Starting in January, the company has also deployed a similar method on Ethereum.
As of press time, the price of Ethena is $1.23, a 1.97% price drop in the last 24 hours, and has recorded a trading volume of $1,163,179,151 in the previous 24 hours. The token is currently ranking #66 on CoinMarketCap’s top-performing cryptocurrency ranking, recording a considerable market capitalization of $1,758,610,849, according to CoinMarketCap’s latest data.
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