Ethena Sees Record High as World Liberty Financial Invests in Token

Ethena has made a strong comeback, with its assets reaching a record high following World Liberty Financial’s (WLFI) purchase of the token. This investment, valued at over $589,000, has seen Ethena’s price jump to $1.20, its highest level since April 14, and 525% above its lowest level this year.

Market Performance and Valuation

As a result of this rally, Ethena’s market capitalization has increased to over $3.36 billion. WLFI, backed by Justin Sun, the founder of Tron (TRX), has accumulated 509,955 ENA tokens, further contributing to the token’s growth. In addition to Ethena, WLFI also holds Ethereum, CBBTC, Tether, USD Coin, Chainlink, and AAVE.

Ethena’s total value locked in its ecosystem has also seen significant growth, reaching over $5.84 billion, according to DeFi Llama. This increase has propelled USDe, its yield-earning stablecoin, to become the third-largest stablecoin after Tether and USDC, with a valuation jump of over 83% in the last 30 days.

Stablecoin Concerns and Price Analysis

There have been concerns about USDe, an algorithmic stablecoin that pays a 27% yield and is not backed by any fiat currencies. However, the odds of USDe de-pegging in 2024 have fallen, with a 2% chance of it dropping below 90 cents, according to Polymarket.

Looking at the daily chart, Ethena’s price has been in a strong bullish trend in the past few months, rallying from a low of $0.20 in September to $1.2, its highest level since April. The coin has remained above the 50-day and 25-day Exponential Moving Averages, indicating that bulls are in control.

Ethena is also forming a cup and handle chart pattern, a popular continuation sign, with an upper side at $1.5210. This suggests that the coin will likely continue rising, with bulls targeting $1.5210, a 33% increase from the current level. A drop below the support at $0.90 will invalidate the bullish view.

Tips for Investors

For investors looking to capitalize on Ethena’s growth, consider the following:

  • Monitor the total value locked in Ethena’s ecosystem and its impact on the token’s price.
  • Keep an eye on the performance of USDe, Ethena’s yield-earning stablecoin, and its potential to de-peg.
  • Watch for any changes in WLFI’s investment strategy and its effect on Ethena’s price.

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