Whales pile into ENA as token rallies over 96% in 30 days

ENA has emerged as the best performing company over the last 7 days, largely thanks to significant improvements in its ecosystem and increased whale activity.

Last month, Ethena (ENA) surged 96.6%, increasing its market cap to $1.14 billion from $420 million in mid-September. Most of these gains have occurred in the last 7 days, with ENA seeing a 45.1% increase during this period.

At the heart of ENA’s price growth is the continued expansion of the Ethena ecosystem. Ethena Labs recently accepted a major proposal to integrate Ethereal, a decentralized exchange built on the USDe stablecoin, into its reserve management system.

The integration is expected to increase the liquidity and utility of ENA tokens in the Ethena ecosystem, making it a more attractive asset for both users and investors.

In addition, Ethena developers announced last week that they plan to further diversify their financial strategy by announcing their intention to invest $46 million of its reserve fund in tokenized assets. The project also received support from major players such as BlackRock and Securitize for the new stablecoin UStb, increasing confidence in its ecosystem.

Spike in whale activity Net flow of large porters in last 7 days | Source: IntoTheBlock

Whale activity played a significant role in ENA’s recent price movement. According to data from IntoTheBlock, major ENA holders accumulated 5.4 million tokens (worth $2.3 billion) on October 15; This is a sharp increase from the $1.18 billion outflow seen on October 9th. Buying whales often signals market confidence or accumulation, potentially driving up prices. It moves upwards, increasing investor confidence.

Additionally, investors on Smart Dex, wallets known for consistently executing profitable swaps on decentralized exchanges, purchased 1.34 million ENA tokens worth $506,100 last week at an average price of $0.32 per token.

Price performance and future outlook

On Tuesday, ENA hit a two-month high of $0.455, following a 45.1% gain in the last seven days. However, the token has since retreated slightly, trading at $0.4179, down 7.5% in the last 24 hours. This decline is likely due to long-term investors taking some profits following ENA’s rapid rise; This is a common occurrence after a very bullish day.

Despite this short-term correction, analysts remain optimistic about ENA’s price trajectory.

According to ‘World of Charts’, ENA has broken the widening falling wedge formation, which is a classic signal of an uptrend. The analyst expects the token to rise another 150% in the near term.

Similarly, another analyst, Altcoin Sherpa, predicts that ENA could reach $0.50 in the short term, provided Bitcoin (BTC) remains stable. If overall market conditions remain positive, ENA could see further gains before facing any significant pullback.

The significant increase in the price of ENA has led to an increase in the number of token holders making a profit; ITB data shows that more than 21% of active ENA holders recorded gains; This is a sharp increase from 5.7% on October 8th. This increased profitability. This may further encourage retail and institutional investors to hold ENA, anticipating further appreciation in prices.