Arthur Hayes: ENA Could 5-10x in the Coming Months

Odaily News - Arthur Hayes stated in his latest article "Situationship" that Ethena is a stablecoin project currently facing challenges but with the potential to easily 5-10x in value. He noted that one issue with Ethena is the lack of a buyback mechanism. However, considering it is currently the sixth-largest USD stablecoin by circulation, this can be overlooked. The problem with ENA lies in the fact that due to declining prices leading to insufficient Bitcoin basis yields, the yield from holding USDe is almost on par with Treasury bonds. Therefore, staking synthetic dollars in USDe, taking on counterparty risk from centralized exchanges and smart contract risk, is simply not worth it. This is why circulation supply has dropped 75% from its peak, and the ENA token price has fallen over 90%.

Looking ahead, even a slight increase in dollar liquidity could drive Bitcoin prices higher, thereby boosting basis yields and attracting significant capital inflows into USDe. ENA doesn't need much to escape its downturn, so in the coming months, it might be an investment option worth considering for a potential quick 5x return.

Previously reported, monitoring shows that Arthur Hayes has been heavily buying ENA since August, accumulating 22.64 million ENA tokens as of August 6th, valued at approximately $2 million.