Compared with the previous analysis of ENA, people are more concerned about short-term prices, so let me talk about my views in this article.
In order to avoid wasting readers' time, let me first state the conclusion. In the short term, ENA will see 2.3$. The following are the reasons for seeing this price. Readers who are not interested can skip it.
The first reason is that the ENA project team is clearly pulling the price
ENA's second phase of airdrops plans to reach a stablecoin issuance of 5 billion within five months. The market value of ENA is linked to the issuance of stablecoins. 5 billion is equivalent to the issuance of DAI. Therefore, the corresponding market valuation of ENA will be equivalent to MKR, which is only higher, not lower. The unit price of ENA is 2.1$ to reach the market value of MKR.
The second reason is that the second airdrop activity empowers ENA
The airdrop activity that originally only supported staking stablecoins to earn points suddenly announced that it supports staking ENA, and if the value of the pledged ENA exceeds half of the stablecoin holdings, an additional 50% points bonus can be obtained. Therefore, recently, media news often appears every day about how much ENA a certain whale has withdrawn from the exchange to stake on the chain. The project team did this without paying anything and directly increased the buying volume of ENA. It is really amazing. According to the 5 billion pledged volume, two-thirds or even more of it is provided by whales. For whales who are careful with their calculations, buying ENA is definitely a cost-effective deal. It is estimated that if some whales buy ENA, the potential buying volume of ENA is about 500 million, which is also the main reason why ENA has been independently trading recently and has been pulling up the market.
Reason 3: Airdrop activity and the upward spiral of ENA valuation
Whales are very careful with their calculations. They have calculated the expected rate of return for the second phase of airdrop activities. However, due to the floating price of ENA, once it rises, the rate of return will be significantly increased, causing market funds to prefer participating in airdrop activities to pledge ENA. Stablecoins, and the more stablecoins minted will increase the market's valuation of ENA. Once the valuation is high, the price will start to rise, continuing to attract market funds to participate in pledges, and so on, and the left foot will step on the right foot.
Based on the above three factors, the market has extremely strong buying and rising expectations. It is not a problem to pull it up to 2.3$, but this is just a conservative estimate. Anyway, I will not sell it even if it really reaches this price. I will hold it for a long time.
