Ethena rises 11% following $34m proposal from BlackRock’s BUIDL distributor

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

Late on July 23, Ethena Labs, the company behind the USDe stablecoin, posted on X that Securitize had requested a $34 million allocation in BUIDL from the company’s $45 million reserve fund. This could give Ethena Labs exposure to U.S. Treasury funds and enable it to make “low-risk” investments and generate returns.

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

According to data provided by Santiment, the number of whale transactions involving at least $100,000 worth of ENA has nearly doubled in the past 24 hours, from 16 to 31 per day.

ENA price, whale activity, RSI and daily active addresses – July 24 | Source: Santiment

On the other hand, according to data from the market intelligence platform, Ethena’s daily active address count decreased by 19% in the last day, from 1,042 to 844.

At this point, whale activity around the asset is increasing while the number of active addresses is decreasing, indicating the possibility of high price volatility due to potential short-term whale profit taking.

According to Santiment, the ENA Relative Strength Index (RSI) is currently trading at 46. The indicator suggests that Ethena is in a good spot for a price increase. However, a brief price correction is expected due to the high volume of whale transactions.