Arthur Hayes Predicts ENA 5-10x in Coming Months, Accumulated 22.64M Tokens

Arthur Hayes, in his latest essay <em>Situationship</em>, says Ethena is a struggling stablecoin project that could easily 5-10x in the coming months. He acknowledges the lack of a buyback mechanism but deems it negligible given Ethena's position as the sixth-largest USD stablecoin. The bigger problem, he argues, is that falling bitcoin basis yields have pushed USDe returns close to Treasury bill levels. This makes staking synthetic dollars into USDe unattractive, since users take on centralized exchange counterparty risk and smart contract risk. This, he says, explains why USDe's circulating supply has dropped 75% from its peak and ENA is down over 90%. Hayes argues that a small increase in dollar liquidity could lift bitcoin, raise basis yields, and drive significant inflows into USDe. He expects ENA to need little to recover, calling it a potential quick 5x investment in the coming months. The positive view comes with Hayes's own accumulation: on-chain monitoring data shows he has been buying ENA since August, with cumulative purchases of 22.64 million ENA, worth roughly $2 million as of August 6.