🚨 ENA suddenly surged 45%! But the real buyback may still need to wait a bit?
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ENA has suddenly become the market focus these past two days. After the news was released, the price quickly strengthened, and the weekly gain once approached 45%. The reason is simple: the Ethena Foundation is preparing to launch an important mechanism—using protocol revenue in the future to buy back ENA on the open market.
But many people may have overlooked a key question:
This buyback hasn’t officially started yet. 👀
According to the latest governance proposal, only once the circulating supply of Ethena’s stablecoin USDe reaches $7.5 billion will a portion of protocol revenue begin to be used for ENA buybacks.
Currently, the USDe supply is only around $4 billion.
That means there’s still substantial room for growth before the $7.5 billion trigger threshold is met.
Once it reaches $7.5 billion, Ethena plans to allocate 5% of its core business net income to the related mechanism, with most of the funds used for open-market ENA buybacks.
As the USDe supply continues to expand, the buyback ratio will also gradually increase.
If, in the future, the USDe supply reaches $25 billion, the related ratio could increase to as high as 25%.
So what the market is truly trading right now isn’t actually “ENA has already started buying back,” but rather a bigger expectation: if Ethena continues expanding in the future, ENA may receive long-term buyback support funded by protocol revenue.
In addition, the Ethena Foundation has recently taken another action—repurchasing some of the locked ENA that early investors had previously sold. Meanwhile, a portion of investor tokens that were originally set to be unlocked monthly will also be adjusted to be unlocked all at once. This means that ENA will face not only “buyback expectations,” but also ongoing potential market pressure from token unlocks.
So the core logic behind this ENA rally is actually very clear:
📈 In the short term, the market is pricing in buyback expectations and adjustments to tokenomics.
📊 In the medium term, the key will be whether USDe supply can grow quickly again.
🔥 In the long term, what’s truly worth watching is when the $7.5 billion threshold gets crossed.
Click the avatar to watch the livestream + join the Jiuji chat group for daily strategies 🚀
#ENA #ethena #USDe
Group: 点击进入玖玖的粉丝群
ENA has suddenly become the market focus these past two days. After the news was released, the price quickly strengthened, and the weekly gain once approached 45%. The reason is simple: the Ethena Foundation is preparing to launch an important mechanism—using protocol revenue in the future to buy back ENA on the open market.
But many people may have overlooked a key question:
This buyback hasn’t officially started yet. 👀
According to the latest governance proposal, only once the circulating supply of Ethena’s stablecoin USDe reaches $7.5 billion will a portion of protocol revenue begin to be used for ENA buybacks.
Currently, the USDe supply is only around $4 billion.
That means there’s still substantial room for growth before the $7.5 billion trigger threshold is met.
Once it reaches $7.5 billion, Ethena plans to allocate 5% of its core business net income to the related mechanism, with most of the funds used for open-market ENA buybacks.
As the USDe supply continues to expand, the buyback ratio will also gradually increase.
If, in the future, the USDe supply reaches $25 billion, the related ratio could increase to as high as 25%.
So what the market is truly trading right now isn’t actually “ENA has already started buying back,” but rather a bigger expectation: if Ethena continues expanding in the future, ENA may receive long-term buyback support funded by protocol revenue.
In addition, the Ethena Foundation has recently taken another action—repurchasing some of the locked ENA that early investors had previously sold. Meanwhile, a portion of investor tokens that were originally set to be unlocked monthly will also be adjusted to be unlocked all at once. This means that ENA will face not only “buyback expectations,” but also ongoing potential market pressure from token unlocks.
So the core logic behind this ENA rally is actually very clear:
📈 In the short term, the market is pricing in buyback expectations and adjustments to tokenomics.
📊 In the medium term, the key will be whether USDe supply can grow quickly again.
🔥 In the long term, what’s truly worth watching is when the $7.5 billion threshold gets crossed.
Click the avatar to watch the livestream + join the Jiuji chat group for daily strategies 🚀
#ENA #ethena #USDe
