Key Takeaways
Mega Matrix’s treasury plans and StablecoinX’s PIPE financing, paired with rising demand for USDe’s yield design, left Ethena and its ENA token positioned for a bullish outlook.
Ethena [ENA] saw an 11.4% decline on the 4th of September, following the announcement of Mega Matrix’s (MPU) $2 billion ENA treasury plan.
The company stated that the proceeds will be directed to the Ethena ecosystem through the purchase of its governance token, ENA.
A day later, StablecoinX, the pure play stablecoin treasury firm, announced an additional $530 million in Private Investment in Public Equity (PIPE) financing.
This brings the total commitments to $890 million, with $360 million from an earlier commitment for a planned merger between TLGY Acquisition and StablecoinX, and a Nasdaq listing.
On top of that, StablecoinX also launched a $260 million ENA buyback program.
Ethena is setting records, USDe yield design ‘a key draw’
Data from Token Terminal showed that USDe, the synthetic dollar stablecoin issued by the Ethena Protocol, reached $12.6 billion in September.
A 31% growth over the past month made Ethena the third-largest stablecoin issuer, behind Tether [USDT] and Circle [USDC].
In the same thread, the September Binance Research report noted that the pace of adoption was noteworthy.
“USDe’s yield design is a key draw, offering holders risk-adjusted returns which differentiated it from purely transactional tokens.”
With global interest rates expected to trend lower, the yield-bearing model of Ethena would continue drawing investors.
ENA price outlook stays mixed
At press time, ENA was trading with a neutral outlook on the 1-day chart, based on recent price action. Despite the neutrality, its move above the $0.48-$0.5 supply zone was pivotal.
The next major resistance lies between $0.80 and $0.88, marking the next hurdle for bulls to overcome.
The Accumulation/Distribution (A/D) indicator has been gradually trending upward over the past month, forming higher lows, a sign of steady buying pressure.
Well, it meant that buyers were slightly more powerful, but not yet dominant in the ENA market. Meanwhile, the Money Flow Index (MFI) remained at neutral levels, indicating a balanced flow of capital.
Overall, ENA could remain attractive to swing traders and short-term buyers, provided it holds above the $0.612 support level, a key threshold for maintaining bullish momentum.