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Which cryptocurrencies will rise in the coming days?

The cryptocurrency market is currently facing significant volatility. The market leader, Bitcoin is struggling to maintain its position above the $60,000 level. This price drop, generally seen as part of the post-Bitcoin halving price correction trend (a reduction in the number of Bitcoins mined), has raised investor concerns.

Despite the negative market outlook, a recent report by the Finbold website highlights two cryptocurrencies, Ethena (ENA) and Tron (TRX), as potential investment options for the upcoming week. These two cryptocurrencies, despite the overall market volatility, may take a different path due to strong fundamental factors.

Ethena (Ethena), an innovative Ethereum-based stablecoin protocol, has gained attention since its launch with its artificial dollar called USDe. The project has received support from prominent figures such as Arthur Hayes, the founder of BitMEX exchange.

The upcoming week is of particular importance for ENA, as the scheduled token unlock event has the potential for significant price volatility. According to TokenUnlocks data, ENA plans to unlock 53.60 million ENA tokens, equivalent to approximately $46 million and 3.76% of its total circulating supply.

Market reaction to this event will be particularly noteworthy, especially in light of recent rumors of ENA’s similarity to the failed Terra project. A recent CryptoQuant report, emphasizing this concern, warns USDe holders that the ENA retention rate (the portion of revenue allocated to stablecoin reserves) must remain above 32% to mitigate risk in a bear market.

This potential volatility comes after ENA’s recent price surge following the launch of USDe. The product, with its impressive 67% annual percentage yield (APY), attracted the attention of high-yield-seeking investors, pushing ENA’s market capitalization to over $1 billion on the back of increased buying pressure.

Currently, ENA is trading around $0.82 and has lost over 1% in the past 24 hours. While this decline is in line with the overall market trend, ENA has lost about 23% of its value in the past week.

Tron (TRX), amidst the recent cryptocurrency market volatility, has experienced a relatively stable trend and has seen moderate growth in the short term. This price stability is in line with the strong performance of the Tron blockchain across various metrics in the first quarter of 2024.

One of Tron’s most significant achievements during this period is the Tether (USDT) circulation on its blockchain surpassing $50 billion in the first quarter of the year. This milestone represents a significant increase and is of great importance to market participants. As stablecoin flows act as a gateway for fiat liquidity entering the cryptocurrency space and can have a long-term impact on prices.

The growth of stablecoin circulation on Tron indicates an increase in asset demand and also a wave of capital inflow from traditional markets into the cryptocurrency space through the stablecoin channel.

In addition to price stability, Tron has also achieved other milestones in the first quarter of 2024:

  • 15% growth in market capitalization: Tron’s total value has increased by 15% during this period.
  • 7% increase in dollar revenue: The project’s dollar revenue has grown by 7%.
  • 25% increase in DeFi TVL: The total value locked (TVL) in the platform’s DeFi space has increased by 25%.

Despite this positive performance, it remains to be seen whether TRX will be able to maintain the momentum from its strong first-quarter performance or be influenced by the overall market sentiment.