🌎 Ethena Surges 11.2% After Securitize Proposes $34M Investment

Ethena gained bullish momentum after Securitize, the distributor of BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), proposed a significant investment.

Late on July 23, Ethena Labs, the company behind the USDe stablecoin, announced on X that Securitize requested a $34 million allocation in BUIDL from the company’s $45 million reserve fund. This potential investment could allow Ethena Labs to gain exposure to U.S. Treasury funds and make low-risk investments to generate yield.

Following the announcement, Ethena (ENA) surged by 11.2% and is trading at $0.5 at the time of writing. The asset’s market cap is close to the $850 million mark. Notably, the ENA daily trading volume increased by 81%, reaching $150 million.

According to data from Santiment, the number of whale transactions involving at least $100,000 worth of ENA almost doubled over the past 24 hours, rising from 16 to 31 unique transactions per day. This spike in whale activity indicates heightened interest from large investors.

On the other hand, data shows that the number of Ethena daily active addresses dropped by 19% over the past day, falling from 1,042 to 844 active unique wallets. The decline in active addresses, coupled with increased whale activity, suggests potential high price volatility due to short-term whale profit-taking.

Per Santiment, the ENA Relative Strength Index (RSI) is currently at 46. This indicates that Ethena is well-positioned for a potential price hike. However, a short price correction might be expected due to the high volume of whale transactions.