The Ethena Price has reached its highest point in over two weeks, driven by a significant increase in total value locked (TVL) and revenue, which have both reached record highs.
Key Metrics and Price Movement
The Ethena token (ENA) has experienced a substantial price increase, rising to $0.7660, which represents a gain of over 230% from its lowest point this year. This recovery has boosted its market capitalization to over $5.8 billion and its fully diluted valuation to $11.1 billion.
The growth of the Ethena ecosystem has been a key factor in the price increase, with TVL reaching a record high of $12.85 billion, significantly higher than the low of $5.5 billion. The TVL has been on an upward trend since the start of the year, beginning with $79 million in 2024.
Driving Factors and Technical Analysis
The TVL is primarily driven by its synthetic USD stablecoin, which is held by nearly 800,000 users and offers an annual return of 7%, surpassing the yield of traditional government bonds. This has led to increased fees and revenue in the network, with fees in the third quarter reaching $109 million, higher than the $27 million earned in the previous year. Revenue has also increased to $7.65 million, up from $1.15 million in the second quarter.
The Ethena Price has also been influenced by the ongoing accumulation of StableCoinx, which has raised an additional $530 million as part of its ENA treasury strategy. StableCoinx has already secured $895 million in funding, holding over 3 billion tokens in its balance sheet.
According to a recent announcement by Stablecoinx Inc., the company has raised additional capital to further accumulate ENA tokens. This development is expected to increase demand for ENA, particularly as whales continue to accumulate the token, now holding over 57 million ENA tokens, representing a 32% increase in the last 30 days.
Technical Outlook and Price Projections
From a technical analysis perspective, the daily time frame indicates that the ENA price has strong bullish signals, suggesting a potential breakout in the coming weeks. The formation of a double bottom pattern at $0.2490 and a breakout at $0.4570 supports this outlook.
The coin formed a golden cross pattern in July, when the 50-day and 100-day moving averages crossed each other. Additionally, a bullish flag pattern has formed, with the price moving above the top of its channel. Therefore, it is likely that the token will experience a strong bullish breakout, with the initial target at $0.8595, the top of the flag. A break above this price could lead to a further increase to the resistance point of $1.3255, the highest point in November last year, representing a potential gain of 80% from the current level.
ENA price chart | Source: crypto.news
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