The price of Ethena (ENA) has increased by 2.2% amidst active market changes and the rising popularity of the USDe stablecoin.
Market and ENA Dynamics
ENA is experiencing growth following positive trading signals. Recent data shows a 2.2% increase in the token over the past week, raising its market capitalization to $4.87 billion. Trading volumes surged significantly after the price jumped from $0.66 to $0.74, aligning with technical analysis suggesting the token was oversold. On the hourly chart, the RSI spiked above 70, while the MACD flipped bullish for the first time in weeks.
USDe Expansion
The primary driver behind the rally is Ethena's USDe stablecoin, which has ballooned to $11.6 billion in supply after the approval of the GENIUS Act. Its yield-bearing model (6–9% APY) and integrations with Aave, Pendle, and Coinbase are fueling rapid adoption. Currently, 55% of Ethena’s assets are looped through Aave, a strategy that amplifies growth but also heightens systemic risk. Analysts warn that an unwind of Aave’s $6.4 billion Ethena-linked exposure could trigger cascading liquidations.
Issues with Buybacks and Unlocks
The Ethena foundation is conducting a $260 million buyback program, purchasing roughly $5 million worth of ENA daily until September 2025. This move aims to counter dilution and provide price stability. However, the token faces ongoing unlocks, with 171.8 million ENA ($106 million) hitting the market on August 5, pushing 41% of total supply into circulation. The effectiveness of the buyback program largely depends on sustained USDe revenues, which fund the repurchases.
For now, ENA's rebound has restored optimism among traders who see potential upside if USDe growth continues. However, the balance between buybacks and unlocks, combined with Aave exposure risks, keeps the outlook uncertain.
