Ethenas governance token, ENA, has surged by almost 15% over the past week. Experts suggest that ENA is shaping up as one of the more attractive crypto assets to hold over the next 3-4 months, and for good reason.

Axel Bitblaze, in his latest analysis, revealed that the hype surrounding ENA is not just an empty narrative it has strong fundamentals, well-defined catalysts, and structured buyback programs that could drive price support.

Catalysts for Ethena

A major bullish driver comes from token buybacks. Ethena has already executed significant buybacks and has acquired 7.3% of ENAs circulating supply in just six weeks. With $310 million allocated to purchase ENA over the next 6-8 weeks, this translates to $5-7 million in daily buying pressure, which is an enormous figure relative to the tokens market.

To put this into context, its equivalent to a $129 billion BTC buy, $30.2 billion ETH buy, or $7 billion BNB buy in terms of market impact. Bitblaze explained that such significant buy pressure creates a scarcity effect that could lift ENAs price steadily, especially in a market where demand is supported by tangible utility.

Macroeconomic trends also favor ENA. If the Federal Reserve implements rate cuts, yields on T-bills will decline, pushing investors to seek better returns. USDe, with its 7-10% APY and a $12.8 billion supply, becomes an attractive alternative, particularly as the US governments Genesis Act now prohibits stablecoin issuers from offering direct yields. This regulatory development could channel more capital into decentralized stablecoins like USDe, which would improve ENAs demand as the governance token.

Looking ahead, Ethena plans to implement a permanent fee switch that allocates a portion of its revenue to continuous buybacks of ENA. Several metrics for this program have already been achieved, including $6 billion in USDe supply, $250 million cumulative revenue, and a $41 million reserve fund.

The remaining catalysts, such as full exchange integration (with OKX expected by November/December 2025) and yield spread alignment, are likely to materialize in Q4. Once these are in place, the analyst believes that ENAs buyback program will be reinforced, creating a self-sustaining upward price momentum.

Unlocks, Fed Hikes, and Still Bullish?

While risks exist, including monthly unlocks of $180-200 million and potential Fed rate hikes, these do not outweigh the structured bullish setup. Even in a risk-off scenario, ENAs protocol-backed fundamentals, ongoing buybacks, and macro tailwinds make it a strong candidate for a hold.

In a market where most altcoins lack real moat or revenue, Bitblaze said that ENA has emerged as a strategic play with both immediate catalysts and long-term edge. For investors seeking a project with tangible support and growth potential, holding ENA for the next 3-4 months appears to be a calculated and promising strategy.

Meanwhile, BitMEX co-founder Arthur Hayes, who also happens to be a prominent Ethena investor, said that ENA bears are losing steam, as he flagged $1.50 as a key level, reiterating his bullish stance. Though trading near $0.81, the prediction hints at upside potential and short-seller vulnerability if buying momentum strengthens.