Ethena’s ENA Surges 20% as Whale Accumulation and AI-Driven Demand Fuel $2B USDe Inflows

Ethena’s ENA token surged 20% on July 26, 2025, outperforming a broader crypto market that remained largely stagnant, with major assets like Bitcoin and Ethereum trading in tight ranges for weeks. The rally was driven by significant whale accumulation and a $2 billion influx into Ethena’s stablecoin product, USDe. Over 1.07 billion ENA tokens were transferred to private wallets, signaling heightened investor trust in the protocol. Ethena’s CEO, Guy Young, noted that the movement reflects growing confidence in the ecosystem, while the 10% annual percentage yield (APY) from staking USDe has drawn attention from investors seeking returns in a low-yield environment [1].

The surge aligns with broader trends highlighted in a MEXC report, which found that 67% of Gen Z traders on the platform activated AI-powered trading bots in Q2 2025. These tools, including algorithmic signals and automated risk management strategies, saw usage spikes during volatile periods, with Gen Z users 2.4 times more likely to implement stop-loss and take-profit rules than older demographics. The report linked Ethena’s rise to a 58% surge in AI trading activity on MEXC during market turbulence, suggesting that algorithmic strategies amplified demand for niche assets like ENA. Younger traders’ disciplined use of bots to exploit micro-trends and liquidity gaps in less-followed tokens has created a dynamic where automated insights increasingly shape price movements [2].

DeFi trader Axel Bitblaze emphasized the role of USDe’s 10% APY in fueling the rally, noting that “people are looping strategies, leveraging positions, and farming that juicy return—[and] all of that demand is fueling the underlying ENA ecosystem.” The stablecoin’s rapid adoption has drawn parallels to past DeFi protocols like CRV and AAVE, where high yields attracted speculative flows. However, analysts caution that Ethena’s surge may reflect short-term speculative positioning rather than fundamental upgrades. The broader market’s lack of macroeconomic catalysts or regulatory clarity has created an environment where niche projects can temporarily attract attention through yield opportunities and AI-driven liquidity tactics [1].

While the 20% gain positions Ethena as an outlier in a lackluster crypto landscape, the MEXC data underscores a structural shift in trading behavior. Gen Z traders’ reliance on AI tools—used to filter out panic-driven decisions and automate execution—has reshaped market dynamics, with 80% projected to rely on AI for full-cycle portfolio management by 2028. This generational shift contrasts with older demographics, who favor chart-heavy, thesis-driven strategies. The convergence of algorithmic trading and DeFi yield mechanisms highlights a new era where niche protocols can capitalize on technological adaptability and speculative demand [2].

Source: [1] [title: Ethena Surges 20% Amidst Stagnant Crypto Market] [url: https://coinmarketcap.com/community/articles/688452bc4e1e2911e4118ea9/] [2] [title: New MEXC Report Finds Half of Gen Z Crypto Traders Rely on AI for Decisions] [url: https://coinjournal.net/news/new-mexc-report-finds-half-of-gen-z-crypto-traders-rely-on-ai-for-decisions/]