ENA up 20% Amid Increased Staking Rewards
Ethena Labs announced the start of its second season, which involves a 50% increase in staking rewards. As a result, the ENA coin showed a sharp growth.
Ethena Labs, the company behind the creation of the ENA coin, has announced an increase in staking rewards. Users who lock more than half of their ENA holdings will receive 50% more rewards. Starting April 8, the minimum staking period will be seven days. The move is aimed at encouraging user engagement. The ENA locking limit is set at $200 million, with possible increases in the future.
Analysts at Lookonchain have reported three wallets that have withdrawn a total of about $15 million in ENA from the Binance exchange to participate in staking with an updated rewards' system.
Whales are withdrawing $ENA from exchanges and staking it due to the #Ethena Season 2 staking rewards.
— Lookonchain (@lookonchain) April 8, 2024
3 whales withdrew 11.9M $ENA($15.23M) from #Binance and staked it.https://t.co/3UrErMJ2R3https://t.co/8ZPz0U8U8Fhttps://t.co/AAwOJLz8qk pic.twitter.com/NbMdbF5xdO
Ethena recently introduced a strategy of buying Bitcoin and simultaneously short selling to generate annualized returns through cash and carry trading. The company has hedged $500 million worth of Bitcoin on several exchanges in preparation for the halving.
In addition, the company has approved the creation of a USDeFRAX liquidity pool in collaboration with Frax Finance to expand FRAX's stablecoin yield offerings. The move, which is part of the roadmap, has been allocated $250 million.
Excited to share the approval of FRAX's singularity roadmap proposal, which includes an allocation towards a USDeFRAX POL via the Curve AMO with a $250m USDe ceiling pic.twitter.com/eM9T4Cjm22
— Ethena Labs (@ethena_labs) April 8, 2024
Amid recent developments in the ecosystem, the ENA token has surged 20% in the last 24 hours. At the time of writing, the asset was trading at $1.30, confirming the recent bullish breakout. This has brought ENA closer to a market capitalization of $2 billion. From a technical point of view, the RSI index has entered the overbought zone, indicating strong uptrend dynamics. In the near term, the token could reach the $2 mark.
