Ethena Rallies 23% as Foundation Eliminates Sell Pressure

Ethena (ENA) has surged 23% within 24 hours to $0.16-$0.17 after its foundation announced a strategic buyback of early investor tokens, reducing future market sell pressure.

The Ethena Foundation acquired locked tokens from major seed investors who had been selling ENA over the past nine months through over-the-counter arrangements in the preceding two-week period.

This move eliminates the monthly venture capital unlock mechanism that historically created downward price pressure on ENA, resulting in a 100% price gain over the previous week.

A governance proposal is currently active to implement protocol revenue-based ENA token buybacks, which would intensify as USDe's total circulation reaches predetermined thresholds.