Polkadot (DOT) and Ethena (ENA) are both up over 20% this week, but the similarities might end there. Price alone doesn’t tell the whole story, so here’s a look at what’s really going on to see what’s driving their recent success.
Similar earnings, different price behavior
Over the past seven days, ENA and DOT have seen gains of over 20%. DOT’s movement has been faster, with a surge at the start of the week. On the other hand, the ENA rally built gradually and remained stable throughout the week.
Source: coinranking.com
Although the result looks similar on paper, the way each asset has evolved shows different types of participation. Ethena involved more short-term momentum, while Polkadot had more consistent buying.
Why is this important? The way a rally forms… often says more about its strength than just the winning percentage.
A Closer Look Makes the Separation Clearer
Over the past 24 hours, Ethena recorded approximately $207 million in trading volume, compared to Polkadot’s $147 million. Simply put, the ENA sees many more hands involved in its movement.
Source: Coinranking.com
Higher volume generally means more confidence as more buyers and sellers agree on price levels. The ENA rally alongside higher activity demonstrates sustained interest.
DOT, on the other hand, has made solid gains with relatively lower turnover, resulting in fewer participants.
When volume supports price, rallies tend to be more stable. Without it, gains can fade quickly.
The dynamics of the offer distinguish them
Ethena’s annual inflation increased over the year, exceeding 400%; there is rapid issuance and distribution of tokens. This growing supply helps explain why ENA needs prolonged demand to support its price movements.
Source: Coinranking.com
DOT inflation, however, remained relatively stable and even dipped into negative territory at times. Both assets currently have 100% of their circulating supply, so there is very little risk of unblocking in the near term.
Source: Coinranking.com
However, inflation trends matter more over time. And here, ENA’s growth-oriented model carries higher supply risk.
Final Thoughts
- The ENA rally was driven by higher volumes and more stable buying.
- The DOT’s quick decision was accompanied by lower turnout.
