Ethena Labs Buys 25M ENA as Whales Accumulate, Tightening Supply
Ethena Labs executed a buyback of 25 million ENA (~$7.05M) from Bybit, raising its treasury holdings to 779.89 million ENA (~$207.7M), according to Onchain Lens. The buyback is part of broader treasury and stablecoin operations (StablecoinX Inc holds a further 2.146B ENA). On-chain analytics show sustained whale accumulation: top holders added ~774.81M ENA over five days (Nansen), and CryptoQuant reported repeated large spot purchases. Exchange netflows from CoinGlass are predominantly negative over the past 10 days (current netflow ~ -$444.6k), consistent with withdrawals to private wallets. ENA traded near $0.27 at reporting, up ~8.69% for the day, with technical indicators (Relative Vigor Index crossover) suggesting short-term momentum. The combined effect of team buybacks, whale buying, and declining exchange supply may support price floors and upward pressure; however traders should monitor resistance at $0.30 and support around $0.242–$0.255 and continue to watch on-chain flows and liquidity dynamics.
Bullish
The news is bullish for ENA. Key drivers: (1) Ethena Labs’ direct buyback of 25M ENA reduces liquid supply on exchanges and signals team confidence; (2) large whale accumulation (hundreds of millions of ENA added over consecutive days) tightens circulating supply and often precedes price appreciation; (3) sustained negative exchange netflows indicate withdrawals to private wallets, removing sell-side liquidity and enabling upward momentum; (4) short-term technicals (price +8.7%, RVI crossover) support immediate bullish bias. Historical parallels: tokens where teams executed buybacks while whales accumulated (and exchange balances fell) commonly saw short-to-medium term rallies due to reduced sell pressure and positive sentiment (examples include project buybacks and reserve accumulation events across DeFi in 2020–2022). Risks that temper the bullish view: concentration risk (large holders can sell), macro crypto market downturns, and potential retests of nearby support levels ($0.242–$0.255). For traders: expect possible short-term continuation rallies but manage risk with stops around key supports and monitor on-chain metrics (exchange flows, whale transfers) for confirmation or sudden distribution.