ENA Token Surges 50% as BitMEX Co-Founder Arthur Hayes Piles In

The price of Ethena's ENA token has surged by over 50% in the past week, reaching $0.13 after months spent near a record low. This sudden increase follows an announcement on August 19 that Ethena and FalconX would establish a $1 billion lending facility to diversify how USDe, Ethena's synthetic dollar, earns its yield.

The rally is largely attributed to the influence of Arthur Hayes, co-founder of BitMEX, who has been vocal about his enthusiasm for ENA. As a founding investor through his family office Maelstrom, Hayes has a significant stake in Ethena and has recently added roughly $2 million worth of ENA to his portfolio.

Hayes' optimism is reflected in his social media post calling ENA a '5 bagger', implying that the token's price could potentially reach $0.50. However, it remains to be seen whether this prediction will hold true, as Hayes' own trading history suggests he may trim his position over the next month or two.

The FalconX facility itself is focused on secured institutional lending, which Ethena Labs founder Guy Young describes as 'one of the largest and most durable sources of return in finance'. While this deal may have contributed to the price increase, it's unclear how much of an impact it will ultimately have on USDe's yield.