Ethena (ENA) Records 136% Surge Against Ethereum (ETH) Amid Strategic Accumulation

Ethena ($ENA), the governance token of the synthetic dollar protocol, has seen a remarkable 136.88% increase against Ethereum ($ETH) over the past 30 days, according to recent market data. This significant outperformance aligns with claims made by crypto investor Andrew Kang, who highlighted substantial daily buying of ENA. Kang stated in a tweet, "> $ENA has been outperforming every asset including $ETH. It’s simple, the daily foundation buying of $ENA is equivalent to $2.5-5B daily buying of BTC or $500m-$1B daily buying of ETH. There is no stronger twap."

Ethena is a decentralized finance (DeFi) protocol that issues USDe, a synthetic stablecoin designed to be a censorship-resistant and scalable dollar-denominated savings instrument. USDe maintains its peg through a delta-neutral hedging strategy, involving holding spot assets like ETH while simultaneously opening equivalent perpetual futures short positions. This mechanism aims to neutralize price volatility and generate yield.

A key driver behind ENA's sustained performance is the protocol's fee-sharing mechanism and strategic accumulation efforts. StablecoinX, a new entity, announced a $360 million fund specifically to purchase ENA tokens, with a daily accumulation plan of $5 million. This consistent buying pressure, often referred to as "foundation buying," provides a strong demand floor for the token.

The impending activation of Ethena's fee-sharing mechanism is also fueling investor interest. This mechanism will distribute a portion of the protocol's revenue, primarily from USDe mint fees and other streams, to staked ENA (sENA) holders. Two of the three required technical thresholds for this activation have already been met, signaling potential direct value accrual for ENA holders.

Beyond the protocol's internal mechanics, Ethena has benefited from broader institutional interest and whale accumulation. The protocol's synthetic dollar, USDe, has surpassed a $6 billion circulating supply, positioning Ethena as a significant player in the DeFi landscape. While ENA's price has experienced short-term fluctuations, its long-term trajectory is buoyed by these fundamental drivers and ongoing ecosystem developments, including partnerships and expansions into traditional capital markets.