
The cryptocurrency market is rife with paradoxes, and the recent Ethena price movements paint a picture of such a conundrum.
Currently trading at $0.8526, Ethena (ENA) has experienced a 7.5% drop in the last 24 hours, positioning it at a lower price point than its recent highs.
Over the past month, the token has suffered a 20% decrease, with a stark 27.1% dip in the last 14 days.
Ethena has turned bearish since forming a risky pattern at the start of the month.
The token is dropping despite significant investment from Donald Trump’s cryptocurrency venture, World Liberty Financial.
World Liberty’s strategic acquisition of Ethena
World Liberty Financial, a project linked to President-elect Donald Trump, has been actively diversifying its crypto assets.
The project recently swapped around $24.6 million in USDC for a range of tokens, including Ether, Wrapped Bitcoin, Tron, Link, Aave, and notably, Ethena.
Although the investment in ENA was comparatively modest at $2.3 million, it signals a vote of confidence from a high-profile entity.
This move is particularly noteworthy given World Liberty’s substantial holdings in Ether, where they now own 43,000 ETH valued at $143 million.
Following the acquisition, World Liberty now holds 5.779M Ethena tokens making the token one of the largest assets held by the Trump-backed project.
While World Liberty’s purchase of ENA tokens should theoretically bolster the token’s value, the market dynamics at play suggest that broader market sentiment, perhaps driven by macroeconomic factors or sector-specific news, might be overshadowing this positive development.
The total value locked (TVL) in Ethena’s ecosystem stands at an impressive $5.837 billion, indicating that the underlying protocol remains robust.
Yet, the price action tells a different story, with ENA trading significantly below its all-time high of $1.52 set back in April of 2024.
Will Ethena price resurge?
Despite the current price drop, the Ethena price could regain its bullish stance based on several factors.
Firstly, the continued growth in TVL suggests that there is real utility and demand for Ethena’s synthetic dollar protocol, USDe.
As more users interact with Ethena’s DeFi offerings, this could eventually translate into increased demand for ENA, driving up its price.
Secondly, the endorsement by World Liberty, even if not directly correlated with immediate price increases, adds a layer of credibility and exposure.
If World Liberty continues its buying spree or if other significant investors follow suit, this could create a positive momentum for ENA.
Moreover, the broader crypto market’s recovery, should it occur following the inauguration of Donald Trump, could lift ENA along with other altcoins.
Given ENA’s performance metrics, including its significant price drop from its high, there’s potential for a strong rebound if market conditions improve or if Ethena’s ecosystem sees further development or partnerships.
There are expectations that the token could soar above its $1.52 ATH in case of a rebound.
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