Ethena’s governance token (ENA) has witnessed a significant 15% increase over the past week. Analysis indicates that ENA has strong fundamentals and catalysts likely to support its price in the coming months.
Fundamental Factors Behind ENA's Growth
Analyst Axel Bitblaze revealed that interest in ENA is driven not only by hype but by robust fundamental indicators. A key factor is the token buyback program, where Ethena has acquired 7.3% of ENA's circulating supply in just six weeks.
Future Catalysts for Ethena
Ethena has allocated $310 million for ENA buybacks over the next 6-8 weeks, creating significant daily buying pressure of approximately $5-7 million. This is substantial for the token's market. Full exchange integration with OKX is expected by late 2025.
Risks and Potential for ENA
Risks include monthly unlocks of $180-200 million and potential Federal Reserve rate hikes. However, analysts believe that ENA remains an attractive asset given its backed fundamentals.
With increasing interest and active token buybacks, Ethena's ENA may be on a sound trajectory for further growth. Despite existing risks, the multifaceted support factors render the token a promising asset for holders in the upcoming months.
