Enzyme (MLN) Price Prediction

Deep Dive

1. DAO Treasury Integrations (Bullish Impact)

Overview: Enzyme’s recent partnerships, like Nexus Mutual managing $45M+ via Enzyme Vaults, highlight its role in institutional-grade DeFi. The launch of options strategies for DAOs (e.g., automated covered calls via Enzyme.Myso) targets yield-seeking treasuries.

What this means: Increased AUM directly ties to MLN burns via protocol fees (0.25% AUM fee in current model). If DAO adoption accelerates, the deflationary pressure could offset selling from grants or inflation.

2. Tokenomics & Burn Mechanics (Mixed Impact)

Overview: Enzyme’s tokenomics rely on a 0.25% AUM fee converted to MLN burns. While the model is deflationary in theory, current AUM ($45M+) only burns ~$112,500 annually—minimal against a $23.8M market cap.

What this means: Burns need 10x+ AUM growth to meaningfully reduce supply. Until then, MLN remains vulnerable to dilution from developer grants (300,600 MLN/year issuance post-MIP7).

3. Technical Breakout Potential (Neutral/Bullish Impact)

Overview: MLN faces resistance at $9.20 (Fibonacci 23.6% level). A close above could target $10 (+25%), but RSI (44.81) and MACD (-0.087) signal weak momentum.

What this means: Short-term traders are eyeing a breakout, but low volume (~$6.6M daily) increases volatility risk. A failure to hold $8.50 support could retest the 2025 low of $7.54.

Conclusion

Enzyme’s price hinges on whether DAO adoption outpaces token inflation. Watch the AUM growth rate and onchain activity via Enzyme.Blue for bullish confirmation. If MLN breaks $9.20, does the protocol’s utility justify a rerating?