Ethena Labs has decided to withdraw its proposal to issue the USDH stablecoin after discussions with community members and validators. This decision follows concerns raised regarding several issues.
Withdrawal of USDH Proposal
Ethena Labs has pulled back its proposal to issue Hyperliquid’s USDH stablecoin, citing concerns raised by community members and validators. Founder Guy Young confirmed this decision in a post, mentioning three key issues:
- Ethena's non-native connection to Hyperliquid. - Involvement in multiple products beyond USDH. - Broader ambitions extending beyond a single exchange partnership.
Young noted that the decision to withdraw was made in response to these concerns, signaling respect for the community's perspective.
Bearish Signals for $ENA
The $ENA token, Ethena's native asset, has shown bearish signs according to technical analysis. The TD Sequential indicator, which tracks price momentum, has signaled 'sell' at both recent peaks, raising concerns about a possible double-top pattern on the chart.
A price correction followed the first peak, and the second peak is now showing similar signs of weakness. If this bearish pattern is confirmed, the price of $ENA could experience a significant retracement, with analysts suggesting a target of around $0.52, marking a notable decline from the current levels of approximately $0.77.
Arthur Hayes Expands $ENA Holdings
Arthur Hayes, the former CEO of BitMEX, has continued to accumulate $ENA tokens. Recently, he added 578,956 tokens to his holdings, valued at approximately $473,000, bringing his total investment in $ENA to nearly $1 million. Hayes typically acquires tokens from platforms like Binance, and this investment comes amid Ethena's attempts to issue USDH and the broader uncertainties surrounding the token's market direction.
Therefore, Ethena Labs has acknowledged community feedback and withdrawn its USDH proposal. Meanwhile, expectations for the $ENA token remain pressured by bearish signals, while significant players like Hayes continue to accumulate its assets.
