Ethena (ENA), the innovative synthetic U.S. dollar protocol operating on the Ethereum network, has experienced a notable upswing, propelled by anticipations of an impending altcoin season forecasted by a prominent crypto researcher.

In the past 24 hours alone, ENA has surged by an impressive 13.5%, reaching a trading value of $0.90 at the latest market update. With its market capitalization inching towards the $1.3 billion milestone, ENA now stands as the 67th-largest cryptocurrency by market cap.

In sync with this surge, Ethena's daily trading volume has surged by 22.5%, currently hovering at $285 million, indicating heightened market activity and investor interest.

Renowned crypto analyst Alex Wacy has sparked speculation surrounding the onset of an altcoin season, projecting substantial growth for selected altcoins, including Ethena, amidst a total market capitalization of $277.174 billion.

Wacy's forecast suggests that approximately 15% of altcoins could witness returns ranging from 10x to an astonishing 100x during this anticipated altcoin season.

Key indicators cited by Wacy include the consolidation of over $700 billion in TOTAL3, excluding Bitcoin (BTC) and Ethereum (ETH), signaling a bullish trend in the broader altcoin market.

TOTAL3 serves as a pivotal metric, representing the collective market capitalization of the top-125 cryptocurrencies, excluding BTC and ETH, acting as a barometer for the broader altcoin market's sentiment.

In his analysis, Wacy underscores Ethena's significance as a synthetic dollar protocol offering a crypto-native alternative to traditional banking systems through its Internet bond mechanism.

Moreover, Wacy highlights an upcoming unlocking event for ENA scheduled for April 2025, alongside identifying a recurring pattern observed in ENA's weekly chart, typically preceding significant growth spurts. With the onset of the altcoin season, this pattern is anticipated to catalyze a swifter rebound compared to projects initiated during bearish market phases.

Ethena Labs, the driving force behind the synthetic dollar protocol, has recently garnered approval for a USDeFRAX liquidity pool in collaboration with Frax Finance. This strategic move aims to diversify the yield of the FRAX stablecoin, thus fortifying the ecosystem surrounding Ethena.

Further buoying optimism, the approval of the Singularity Roadmap proposal has paved the way for the establishment of a USDeFRAX pool on the decentralized finance (DeFi) stablecoin exchange Curve, boasting a substantial $250 million ceiling.

However, amidst the prevailing optimism surrounding Ethena and its ecosystem, concerns have been voiced by Fantom developer Andre Cronje regarding the potential risks associated with the USDe peg system. This system hinges on collateralized positions to maintain parity with the U.S. dollar, a design reminiscent of UST, which previously posed challenges for Terra's ecosystem.