Ethena Smashes $10B TVL – 4 Explosive Catalysts That Could Rocket ENA Past $1 This August
Ethena just crossed the $10 billion total value locked (TVL) milestone—and the party might just be getting started. Here’s what could send ENA soaring past the $1 psychological barrier before August ends.
Catalyst 1: Institutional FOMO
With yield-starved hedge funds circling DeFi like vultures, Ethena’s synthetic dollar protocol is primed for a liquidity tsunami. The $10B TVL print? That’s Wall Street’s bat signal.
Catalyst 2: Short Squeeze Fuel
Perpetuals traders have been leaning hard against ENA—until they weren’t. A 15% weekly surge already liquidated $2.8M in shorts. More pain could be coming for the bears.
Catalyst 3: Cross-Chain Domination
Base chain integration went live last week. Solana rumors are swirling. Every new bridge becomes another liquidity firehose pointed at ENA’s price chart.
Catalyst 4: The ‘Useless Governance Token’ Narrative Dies
Suddenly, staking yields and protocol votes matter again—especially when they’re attached to a protocol printing real revenue. Who knew?
The stars are aligning for ENA, but remember: in crypto, even ‘sure things’ have a habit of rug-pulling at the worst possible moment. Just ask your last altbag.
Ethena price catalysts for August
August is shaping up to be a pivotal month for Ethena, with multiple on-chain and market drivers aligning to potentially push ENA higher. These include:
1. USDe stablecoin adoption
The first significant driver is the rapidly growing adoption of Ethena USDe (USDE), the platform’s synthetic stablecoin. USDE is now the third-largest stablecoin with a market valuation of over $10.2 billion, as per Token Terminal data. It’s 11% APY and the capital-efficient design has attracted institutional and retail demand.
Fees, revenue, and supply are up 100% or more in the past month. Potential listing on well-known exchanges like Binance or OKX might allow ENA holders to receive fee distributions, which WOULD increase its utility and drive demand higher.
2. Ethena token buyback program
The second driver is Ethena’s $260 million buyback fund, which sets aside about $5 million per day to repurchase ENA tokens from the market.
This program has already boosted recent price increases by aggressively reducing the circulating supply. If the buybacks continue at the same pace through August, the scarcity effect could keep prices elevated.
3. Ethena whale accumulation
A third factor is increasing whale and institutional participation. Institutional inflows into ENA-related derivatives have hit all-time highs, and addresses with 100,000–1 million ENA currently control nearly 50% of the supply, as per Nansen data.
This accumulation suggests strong confidence from key players, which could further support Ethena’s rally if sentiment remains bullish.
4. Ecosystem growth and integrations
The growth of Ethena’s ecosystem provides additional momentum. Recent integrations, including with AAVE (AAVE) for Liquid Leverage and Coinbase International for USDe hedging, expand the protocol’s appeal.
The planned launch of the Converge blockchain, where ENA will serve as the native token, could become another demand driver if development updates are released this month.
Ethena technical analysis
Despite the most recent decline, ENA is still showing a strong uptrend on the daily chart. The price is trading above its 50-day moving average, and the relative strength index has cooled slightly but still in overbought levels, suggesting room for another upward push.
With resistance at $0.84, the Bollinger Bands show that the price is consolidating NEAR the upper band. A move toward the psychological $1 mark might be triggered by a breakout above this level.
If bulls fail to reclaim $0.84, support lies at $0.72, followed by a stronger level near $0.68. A break below $0.68 would signal a deeper correction, but momentum indicators and volume trends currently lean bullish, keeping the $1 target within reach.
