Bittime – The price of the ENA token , the governance token of synthetic dollar protocol Ethena, has plunged 35% in the past two weeks. As of Wednesday, April 24, 2024, ENA is trading at around $0.919.
This decline was one of the deepest among the top 100 cryptocurrencies in the last two weeks. The downward trend looks set to continue, considering that ENA is back down around 9% in the last 24 hours.
In comparison, Bitcoin (BTC) is only down 3.4% over the past two weeks. Ethereum (ETH) saw a bigger drop of around 7%, but both showed slight increases in the past week.
Get to know Ethena, ENA, and USDe Token
ENA is a governance token, meaning its primary function is to give its holders voting rights to determine the future of the Ethena synthetic dollar protocol.
The main product of this ecosystem is USDe. USDe is a stablecoin pegged to the dollar and supported by a delta-hedging strategy.
This strategy uses Bitcoin and Ethereum as reserves, while offsetting their volatility by holding perpetual shorting futures on both assets.
One popular use of USDe is staking. According to the official website, there is approximately $2.4 billion in total value locked (TVL) on the platform, with 163,810 users.
The current annual yield is around 11.6%, based on the seven-day moving average on Ethena's home page.
Check Today's Crypto Market:
ENA Price Falls, USDe Questioned
ENA prices began a freefall last week, when a report by CryptoQuant warned USDe holders that the keep rate or share of earnings allocated to Ethena reserve funds needed to stay above 32% in a bear market to avoid risk.
ENA started trading on April 2 at around 79 cents and rose almost consistently over the next 9 days to a high of $1.52 on April 11. The price is currently showing a 39% decline and there are signs this decline could continue.
ENA is trading slightly below its 30-day moving average and the Relative Strength Index (RSI) is at 35 and continues to fall. If RSI falls below 30, ENA will be considered oversold.
ENA Price Today
Summer: Over
ENA still continues to be in the red. Now, the price of ENA is IDR 13,873 or $0.86. Being at this price is because ENA experienced a decline of -8.42%. Previously, ENA's price was IDR 15,940 or $0.99. That is the highest price in the last 24 hours.
Also Read: Ethena (ENA): Can It Repeat Luna's Success Without Its Crash?
ENA Hype Dims
CryptoQuant's report warning of potential de-pegging of USDe reminds us of the fate of algorithmic stablecoin UST.
Once one of the world's largest cryptocurrencies , the dollar-pegged stablecoin UST lost its peg in May 2022.
Many investors withdrew their funds too quickly, causing the algorithm to experience hyper-inflation and billions of dollars to be lost from the ecosystem. The crypto industry also entered a year-long recession.
In subsequent analysis, many parties highlighted that analysts had previously warned of the possibility of de-pegging having fatal consequences. However, these warnings were largely ignored.
There is a Platform of Hope for ENA
The crypto world in 2024 will be much different. With many lessons learned over the past two years, awareness of potential problems in the crypto market is higher.
An active community of crypto journalists and influencers makes retail investors more knowledgeable about protocol security and stability issues.
However, education is still important. For example, many do not yet understand the risks of USDe even though this stablecoin is one of the fastest growing.
In these conditions, a new protocol is emerging with the hope of incentivizing more people to learn about crypto while earning profits.
99Bitcoins is a legacy platform with a long-standing community of 700,000 YouTube subscribers and 2 million registered users for their crypto courses.
Through a revolutionary Learn-to-Earn model, 99Bitcoins uses a combination of gamification and a leaderboard reward system to make users feel that their learning is generating real profits.
Also Read How To Buy Crypto:
Conclusion: Crypto Investments Require Caution and Education
Lessons from ENA: ENA's price crash is an important reminder for crypto investors. Market hype and sentiment can change quickly. Investors need to conduct in-depth research before investing in certain crypto assets, especially those offering complex financial products such as algorithmic stablecoins.
1. New Opportunities with an Educational Approach
The emergence of platforms like 99Bitcoins indicates a positive shift in the crypto ecosystem.
With the Learn-to-Earn model, 99Bitcoins seeks to increase crypto literacy among retail investors. More educated investors will make crypto markets more efficient and reduce the risk of speculative bubbles.
2. Smart Investment
The crypto market offers high profit potential, but is also accompanied by high risks. Investors need to implement smart investment strategies, such as:
3. Diversification
Don't allocate all your investment funds to just one type of crypto. Diversify your investment portfolio by investing in various crypto assets.
4. Manage Risk
Set a stop-loss to limit losses and do not invest more than your financial capabilities.
5. Research and Analysis
Learn the fundamentals of crypto assets before investing. Don't just focus on trends and momentary hype.
By investing smartly and staying up to date with the latest developments, you can achieve long-term profits in this dynamic crypto market.
How to Buy Ethena (ENA) on Bittime
You can buy and sell Ethena (ENA) in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
Ethena (ENA) is available on Bittime with the market pair ENA/IDR . To be able to buy ENA IDR at Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Learn the complete guide on how to buy Ethena (ENA) on Bittime .
Monitor price chart movements for Ethena (ENA) , Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Read Also:
Is ENA (ENA) Safe? Analyzing New Stablecoin Projects
How to Get $ENA Coins Through Airdrop: A Beginner's Guide
US Crypto Stocks Soar on First Trading Day After Bitcoin Halving
DISCLAIMER : This article is informational and is not an offer or solicitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
Comments
0 comments
Please sign in to leave a comment.