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

Odaily News: Arthur Hayes reposted a video of his interview on the X platform, stating 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, and selling pressure from venture capital investors, combined with a sluggish crypto market, has led to lower yields, bringing the entire mechanism to a standstill.

Arthur Hayes stated that if Bitcoin rallies and triggers large-scale short covering, the market basis could expand rapidly, and a higher basis would push Ethena's yield from the current ~4% up to 8%-9%. Once yields recover, Ethena's yield-driven mechanism could re-form a positive feedback loop, revitalizing the ecosystem.