The cryptocurrency space continues to witness the introduction of new projects, with some immediately capturing market attention.
Among these is Ethena (ENA), a synthetic dollar protocol supported by Arthur Hayes, co-founder of the BitMEX crypto exchange. As evidenced by its price trajectory, ENA has garnered significant interest in the short term, emerging among the best-performing assets.
Despite concerns surrounding the sustainability of ENA’s rally, the token is also attracting interest from whales. Particularly, data shared by Spot on Chain in an X (formerly Twitter) post on April 7 indicated that a crypto whale made a substantial investment in ENA, purchasing nearly $3 million worth of the digital asset.
ENA whale transactions. Source: Spot on Chain
Before this transaction, the unidentified investor was an active trader on Bybit, engaging in trades involving various tokens such as Chainlink (LINK), Ethereum Name Service price (ENS), CyberConnect (CYBER), Fantom (FTM), The Sandbox (SAND), Decentraland (MANA), and Aevo (AEVO). Following the trades, the whale made an estimated total profit of $347,000 and a win rate of 71.4%.
Implication of ENA whale activity
It’s worth noting that the whale investment in ENA could signal the state of the network. Typically, when whales invest in a cryptocurrency, their large transactions can immediately influence prices, signaling market sentiment and affecting liquidity while pointing to possible bullish sentiments.
Unfortunately, some individuals may exploit price movements for personal gain, potentially harming smaller investors and market integrity. At the same time, ENA’s true market value is yet to be established, warranting caution regarding current market sentiments.
Overall, ENA has gained traction in the market following its recent distribution of governance tokens through an airdrop to users. The token surpassing the $1 mark remains crucial to the sustainability of its rally, which saw ENA gain almost 80% in a week to trade at $1.22 by press time.
ENA seven-day price chart. Source: CoinMarketCap
Despite the rally, concerns persist that ENA’s surge could be short-lived. Industry players like Andre Cronje, the creator of Fantom, warn that the token could potentially face the same fate as the collapsed Terra ecosystem.
Disclaimer:The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
