Main Points :
- Arthur Hayes has accumulated over 5 million ENA tokens (~US$3.9 million), with nearly US$1 million in purchases in the past 48 hours, ahead of a key vote for the USDH stablecoin on Hyperliquid.
- Ethena’s stablecoin USDe has seen rapid growth, with market cap passing US$12-13 billion, putting it in third place among stablecoins (behind USDT & USDC).
- Ethena has proposed issuing USDH, a native stablecoin for Hyperliquid, backed by USDtb (via BlackRock’s BUIDL fund), offering attractive terms: revenue sharing (95%), ecosystem incentives, and migration support.
- Ethena uses yield-generating mechanisms: “cash and carry” trading / derivatives arbitrage, staking, integrations with DeFi (Aave, Pendle, etc.), to deliver returns exceeding U.S. Treasuries.
- Technical & market indicators suggest ENA may break out: support zones (~US$0.70-0.80), bullish patterns (cup-and-handle), long-position dominance, but also risk if key supports fail.
- Regulatory and institutional tailwinds are favorable: stablecoin market nearing US$280-300 billion, growing demand for yield-bearing stablecoins, moves like the GENIUS Act in the U.S., and partnerships with institutional players.
1. Arthur Hayes’ ENA Accumulation & Timing
Arthur Hayes, former BitMEX CEO, has significantly ramped up his holdings of ENA over recent days. Over a 48-hour span, he bought ENA worth nearly US$995,000, including a tranche of 578,956 ENA (~US$467,700) from Binance. His total ENA holdings now amount to about 5.02 million tokens, valued around US$3.91 million.
The timing is meaningful: the accumulation occurs just ahead of the Hyperliquid USDH stablecoin vote, scheduled for September 14 (Validators of Hyperliquid will decide which proposal gets to issue USDH). Ethena is one of several bidders. Hayes’ accumulation may be seen either as a personal bet or as aligning with Ethena’s proposal.
2. Ethena’s Stablecoin Ecosystem & USDe Growth
Ethena Labs’ flagship stablecoin, USDe, has seen strong growth in both supply and use. Its market capitalization has grown by over 200% since August 2024, and it now constitutes over ~4% of the total stablecoin market (still behind USDC ~24%, and USDT ~61-62%).
USDe’s appeal comes from yield opportunities: integration with DeFi protocols like Aave, Pendle, etc., yield staking, and derivative or synthetic approaches to maintain the peg while generating returns. For instance, its APY on certain platforms has been significantly higher than for USDT or USDC.
3. Ethena’s USDH Proposal & Competitive Landscape
Ethena has submitted a proposal to be the issuer of USDH, Hyperliquid’s native stablecoin. Key aspects of the proposal:
- Backed with USDtb, which is itself backed via BlackRock’s BUIDL fund and issued through Anchorage Digital.
- Promises to share 95% of revenue (from reserve income) with the Hyperliquid community. Migration costs from existing USDC trading pairs to USDH will be covered.
- Ecosystem incentives committed, plus design features to align governance and oversight with Hyperliquid’s validators and community.
Other competitors in the USDH bid include Paxos (with PayPal backing), Sky, Frax Finance, Agora, Native Markets, etc. Each has different combinations of yield sharing, reserve design, regulatory compliance. Ethena’s proposal is seen by many as particularly strong.
4. Yield Strategy & Risk-Reward Considerations
Ethena’s model is not just an ordinary fiat‐collateral stablecoin. Its approach combines:
- “Cash and carry” trades / derivatives arbitrage: hedging risk and seeking returns higher than benchmark rates. Hayes has predicted ENA could deliver ~51× return by 2028 if USDe captures ~25% of stablecoin market share.
- Institutional capital flows: large raises, buyback programs, treasury accumulation. Projects are locking ENA, using buybacks to reduce circulating supply.
- DeFi integrations and yield stacking to generate revenue for stablecoin holders / users. USDe as depositable collateral, staking, yield sharing.
But there are risks: regulatory scrutiny of synthetic/decentralized stablecoins; interest‐rate environments shifting; peg stability challenges; execution risk in migration; dependency on validators, ecosystem incentives; possibility of a competitor winning the USDH vote.
5. Technical & Market Indicators for ENA Price
From recent charts and metrics:
- ENA has found support between US$0.70-0.80, with resistance zones around US$0.84, US$1.00, and possibly extending toward US$1.16 under favorable conditions.
- A “cup-and-handle” pattern was observed, which typically signals a bullish continuation.
- Long positions dominate perpetual futures (roughly ~73% longs vs ~27% shorts), indicating trader confidence in upside. But funding rates have been only slightly negative, indicating the longs are not overpaying heavily—this suggests a more balanced (and perhaps sustainable) bullish sentiment.
6. Regulatory & Macro Environment Tailwinds
- The stablecoin market has lately grown toward US$280-300 billion globally, with Tether (USDT) and Circle (USDC) still dominating, but new entrants like Ethena gaining noticeable shares.
- Regulatory clarity (e.g. the GENIUS Act in the U.S.) is providing frameworks for compliant stablecoin issuers, especially those offering yield, tokenized assets, or integrating with TradFi. Ethena is positioning to take advantage.
- Institutional interest is increasing for stablecoins that offer yield or revenue sharing, especially in low interest rate or inflationary conditions, or in jurisdictions where crypto integration with payments / treasury operations becomes more viable.
What This Means for Investors & Practitioners
For someone interested in discovering new crypto assets or sources of crypto-based revenue, and interested in practical blockchain uses, here are some implications:
- ENA could be a high-upside speculative play if Ethena wins the USDH vote, continues growing USDe / USDtb, and maintains yield mechanisms. The potential 51× forecast is aggressive and depends on execution, but the leading indicators are encouraging.
- Yield bearing stablecoins are becoming more competitive. USDe’s model shows that non-fiat reserve stablecoins (or those with synthetic or hybrid backing) that deliver decent yield can attract both retail and institutional capital, especially when backed by strong governance and regulatory compliance.
- Stablecoin governance matters. The USDH vote shows how the governance structures, revenue sharing, incentives, and community / validator alignment are critical differentiators among proposals. Whoever wins may set a template.
- Risk remains high. Regulatory risk, peg stability, macro changes (interest rates, inflation, yield curve shifts), and competition are very real. Also technical analysis suggests key levels; failure to hold support could bring downside.
Recent & Emerging Trends (Beyond Original Article)
In addition to what was in the original article, some more recent developments are:
- Ethena’s USDe supply has now passed US$12-13 billion, making it firmly the third largest stablecoin by market cap after USDC & USDT.
- Ethena’s treasury / institutional capital raises are large: projects like StablecoinX have raised hundreds of millions to support ENA token buybacks & ecosystem expansion.
- The competition for USDH is intense, with several well-known players (Paxos, Sky, Frax, Agora, Native Markets) each submitting proposals and making trade-offs in yield, reserve backing, and governance. Ethena’s proposal is among the more aggressive.
- On the technical front, ENA is consolidating near its Fibonacci retracement levels and showing chart patterns that suggest potential breakout (if momentum holds). But its drop from all-time high remains large, and its price remains volatile.
Conclusion
Ethena (and its ENA token) is one of the most interesting stablecoin/ecosystem stories unfolding now. Arthur Hayes’ accumulation signals confidence (or at least speculative positioning) in Ethena’s ability to compete, especially via the USDH proposal, rising USDe adoption, and innovative yield strategies. For those looking for new growth opportunities, ENA may offer a high-risk/high-reward play: if the pieces come together (winning votes, regulatory compliance, stable peg, attractive yield), returns could be substantial; if not, downside is also meaningful.
For practitioners interested in blockchain application, Ethena shows how stablecoins are evolving beyond simple fiat-backed tokens: synthetic or hybrid reserve models; using derivatives; governance & revenue sharing; integrating TradFi institutions; embedding incentives for ecosystem growth. These are likely to shape the next wave of stablecoin innovation.
If I were you, I’d watch the USDH vote, monitor ENA’s support zones, study Ethena’s reserve and yield mechanisms, and assess how regulation is developing in your jurisdiction. ENA could be one of the leading “next generation” stablecoin-ecosystem tokens in the 2025-2028 window.
