Ethena (ENA) is experiencing significant growth due to increased liquidity and the impacts of the Fed's rate cuts. Investors are positioning themselves to benefit from the expected price surge, with a record TVL of $12.025 billion. Technical indicators and fundamentals confirm a strong bullish potential for the upcoming months.

Ethena Sees Massive Liquidity Surge

In the bustling world of cryptocurrencies, Ethena [ENA] has recently experienced a remarkable upward trajectory. Fueled by the interest rate cuts from the US Federal Reserve (Fed), data reveals a substantial increase in liquidity across Ethena’s on-chain and off-chain markets, with Total Value Locked (TVL) reaching a new record of $12.025 billion.

This massive influx of liquidity suggests that many investors are betting on the long term, injecting capital while positioning themselves to benefit from Ethena’s expected price increase. A particularly interesting “double win” effect.

The Potential Impact of Fed Rate Cuts

Speculation around further rate cuts by the Fed could further stimulate Ethena’s bullish momentum. According to experts, this cryptocurrency would be the most “leveraged” asset to the American central bank’s decisions. A scenario already observed in 2024, when a period of rate reduction led to an impressive 419% increase in Ethena’s price.

The co-founder of Ethena Labs even stated on X (formerly Twitter) that “Ethena is the most leveraged asset in the world to interest rate cuts“. A perspective that suggests potential for similar gains in the coming months.

Price Outlook for Ethena

In the short term, Ethena’s technical picture remains highly positive. The cryptocurrency has successfully broken out of a bearish falling wedge pattern, suggesting a continued uptrend. Analysts identify a price target of $0.85, which would represent a new all-time high.

Technical indicators confirm this bullish trend, with significant capital inflow (Money Flow Index at 71.54) and powerful market momentum (Average Directional Index at 38.41).