Arthur Hayes Says Ethena Could Rise 5 to 10 Times as ENA Falls Over 90%

Arthur Hayes said in his latest article, "Situationship," that Ethena is currently struggling but could still rise 5 to 10 times. According to Odaily, he said Ethena lacks a buyback mechanism, but noted that it remains the sixth-largest circulating U.S. dollar stablecoin and dismissed that issue.Hayes said the yield on holding USDe is now close to Treasury yields because lower prices have reduced Bitcoin basis returns. He said staking synthetic dollars in USDe is not worthwhile because it exposes holders to centralized exchange counterparty risk and smart contract risk. He added that circulating supply has fallen 75% from its peak and that the ENA token price has dropped more than 90%.Hayes said even a small increase in U.S. dollar liquidity could lift Bitcoin prices, raise basis returns, and bring more funds into USDe. He said ENA does not need many conditions to recover and may be a 5-times investment opportunity over the next few months.Earlier reports said Hayes had been buying ENA heavily since August. By August 6, he had accumulated 22.64 million ENA, worth about $2 million.