Whales Buy 1.0 Billion ENA Tokens as Price Surges 110%

Large holders, or "whales," have recently accumulated over 1 billion Ethena (ENA) tokens, raising questions about what they know that the broader market may not. This development comes as the price of ENA has surged by over 110% since early July, signaling growing confidence in the token and its underlying ecosystem. According to on-chain activity, this accumulation is not random; it reflects strategic positioning by major players in the crypto market.

Crypto analyst Ali highlighted the whale activity, stating, "What do they know that we don’t?" [1], pointing to a potential shift in sentiment and a deeper understanding of the project's fundamentals. This move is particularly notable in a market environment marked by mixed signals, where such aggressive buying is often seen as an indicator of strong conviction.

Ethena's value proposition is increasingly being recognized by analysts. The protocol, behind the synthetic stablecoin USDe, has moved beyond short-term hype and is now being viewed as one of the most important protocols in crypto. USDe operates on a delta-neutral strategy, utilizing Ethereum and Bitcoin in spot and perpetual futures to maintain its stablecoin peg while generating yield. This yield currently stands at approximately 11 to 12% annually [1], making it attractive in a low-return investment climate.

The supply of USDe has grown significantly, now exceeding $11 billion, positioning it as the third-largest stablecoin after USDT and USDC. This rapid adoption is also reflected in Ethena’s total value locked, which nearly doubled from $5.3 billion to $9.35 billion in just two weeks [1], despite a general slowdown in the broader market. These metrics suggest that investors are not merely speculating but actively engaging with the Ethena ecosystem.

Another factor driving interest is the buyback initiative under the Stablecoin X project, which is backed by Ethena. This initiative plans to raise $360 million through a SPAC, with $260 million allocated for daily buybacks of ENA tokens. This results in approximately $5 million in daily buybacks over six weeks, accounting for nearly 8% of the total circulating supply [1]. Such a buyback plan not only reduces supply but also signals strong internal confidence in the token’s long-term value.

Despite some selling from early supporter Arthur Hayes, the overall capital flow into Ethena remains positive. Analyst Erhan K emphasizes that large holders are drawn to projects with strong fundamentals and smart capital movements. With buybacks, yield-driven adoption, and rising demand for USDe, ENA is in a stronger position than it was several months ago.

The Ethena protocol also benefits from its fully on-chain design, which minimizes exposure to traditional banking risks. As adoption of USDe continues and the buyback plan unfolds, there may be continued upward pressure on the ENA price. Whales are clearly making a bet on the Ethena ecosystem's potential, and the current trajectory suggests that this may only be the beginning.

Source: [1] Whales Accumulate Over 1 Billion Ethena (ENA) Tokens Again: What Do They Know? (https://captainaltcoin.com/whales-accumulate-over-1-billion-ethena-ena-tokens-again-what-do-they-know/)