Ethena Foundation Updates Spark Bullish Sentiment in ENA Tokens

The Ethena Foundation has announced four key updates to its ecosystem, sending ENA tokens soaring. The changes aim to address lingering issues that had weighed on the token's price. Analysts have hailed these updates as bullish and long overdue.

Firstly, the Foundation has acquired all locked ENA tokens from major seed investors who sold their shares in the past nine months. This move effectively eliminates monthly VC overhang, a major bearish factor for ENA. Team tokens remain locked as per earlier plans.

The Ethena Foundation and lead investors have agreed to eliminate future overhang by releasing unvested tokens. In 2024, Ethena raised $180 million by selling 315 million ENA tokens, which has resulted in persistent VC overhang until the latest update.

The updates also include a fee switch and an ENA buyback proposal using generated revenue. If USDe's market supply crosses $7.5 billion and annualized revenue reaches $450 million, 5% of the proceeds will go towards ENA buybacks.