Arthur Hayes: Bitcoin Short Squeeze Could Restart Ethena's Flywheel, ENA Yields Expected to Rise to 9%

Odaily Odaily News: Arthur Hayes, in a reposted interview video on the X platform, stated that the Ethena (ENA) ecosystem is currently facing a downturn, but as market conditions improve, its yield mechanism may restart. The ENA price has fallen approximately 99% from its all-time high, with selling pressure from venture capital investors and a sluggish crypto market leading to lower yields, bringing the entire mechanism to a standstill.

Arthur Hayes stated that if Bitcoin rises and triggers a large-scale short squeeze, the market basis could rapidly expand, and a higher basis would drive Ethena's yields up from the current ~4% to 8%-9%. Once yields recover, Ethena's yield-driven mechanism could re-establish a positive flywheel effect, revitalizing the ecosystem.