ENA's Buyback Surge Ignites Bull Run: What's Driving the 12% Price Spree?

Ethena’s native token, ENA, has seen a notable surge in value and investor interest amid an expansive buyback initiative and broader developments in the Ethena ecosystem. As reported by CoinPedia and other sources, ENA’s price rose 12.35% in a single day to $0.7351, with the weekly increase reaching another 12% and a market capitalization sustained above $5 billion [1]. The primary driver of this rally appears to be the ongoing buyback efforts by Ethena’s treasury arm, StablecoinX. Since July 21, the buyback program has executed $150 million of its $260 million plan, reducing circulating supply by 3.5%, while a broader $570 million initiative has reduced overall supply by 13%, creating a supply-driven tailwind for price action [1].

StablecoinX has also announced a new $530 million in private investment in public equity (PIPE) financing, increasing total committed capital to $890 million ahead of a planned merger and Nasdaq listing. The combined entity, to be named StablecoinX Inc., is expected to hold more than 3 billion ENA tokens, marking the first dedicated treasury business for the Ethena ecosystem [2]. This strategic move, supported by institutional investors such as YZi Labs, Brevan Howard, and Susquehanna Crypto, aims to deepen ENA liquidity, enhance ecosystem resilience, and fuel the growth of Ethena’s stablecoins, USDe and USDtb [2]. The Ethena Foundation has also announced a $310 million token buyback program, bringing the total buyback commitments to $570 million [3].

The Ethena stablecoin, USDe, has emerged as a key growth driver, having become the fastest stablecoin to surpass $10 billion in supply in under ten months, reaching $12.6 billion as of September. Binance Research notes that this rapid adoption outpaces historical milestones of major stablecoins like Tether’s USDT and Circle’s USDC [2]. In addition, Ethena’s fiat-backed stablecoin, USDtb, has gained regulatory clarity with a pathway to compliance under the recently enacted U.S. GENIUS Act, which was signed into law by President Donald Trump on July 18 [2].

On-chain data from Santiment indicates that whale activity has intensified, with large investors holding over $5 million in Ethena’s stablecoin increasing their share by 3% in a fortnight. This trend, coupled with the buyback program, has further tightened supply and supported bullish momentum [1]. Technical indicators also show positive signs, with the ENA price breaking above the 30-day moving average and the MACD histogram turning positive. Traders are closely watching key resistance levels at $0.75 and $0.79, with the next major target at $0.85 [1].

Analysts emphasize that while current momentum is strong, the token still faces challenges ahead. For instance, the upcoming $25 million token unlock could introduce short-term volatility, although strong fundamentals and continued buybacks are expected to mitigate downside risk [4]. The broader market dynamics, including demand for USDe and the hedging model’s yield capture, are expected to play a critical role in determining the trajectory of ENA’s price in the near term [2].

Source:

[1] Ethena Price to Jump Another 15% Amid Buybacks and Regulatory Win (https://coinpedia.org/price-analysis/ethena-price-to-jump-another-15-amid-buybacks-and-regulatory-win/)

[2] StablecoinX expands financing to $890M for Ethena's ENA ... (https://cointelegraph.com/news/tlgy-and-stablecoinx-secure-530m-pipe-as-ethena-s-usde-becomes-fastest-stablecoin-to-10b-supply)

[3] StablecoinX secures additional $530 million PIPE financing (https://www.investing.com/news/company-news/stablecoinx-secures-additional-530-million-pipe-financing-93CH-4227564)

[4] Ethena Price Rallies 6% as $25M Token Unlock Looms (https://coinpedia.org/price-analysis/ethena-price-rallies-6-as-25m-unlock-looms-will-bulls-hold-0-70/amp/)