Ethena USDe stablecoin supply surged by 42% to enter the top three! The fee switch is about to be activated, and ENA may challenge 1 USD | Ethena price prediction

The circulating supply of the synthetic stablecoin USDe under Ethena Labs has surged by 42% in a month, with a market capitalization exceeding 12.4 billion USD, surpassing DAI and USDS to become the third largest stablecoin in the world, only behind USDT and USDC. At the same time, the activation conditions for the protocol "fee switch" are nearing full completion, and it is expected to soon allow ENA holders to share in the protocol's revenue. USDe employs a unique delta-neutral hedging strategy to maintain its peg, creating differentiated competition with traditional fiat-collateralized stablecoins. The ENA price has risen 8% in a day to 0.6775 USD, with trading volume surging by 133%, and analysts are optimistic about its potential for further increases after breaking key resistance.

USDe stablecoin scale and growth: Derivative strategies drive supply surge

The market capitalization of USDe has grown from approximately 87.3 billion USD to 12.4 billion USD in about a month, an increase of 42%, officially becoming the third-largest stablecoin by market capitalization. This growth primarily stems from the adoption of a delta-neutral hedging strategy: opening short positions on centralized exchanges through user deposits to hedge against volatility, rather than relying on traditional bank reserves or government bond collateral. This model has gained particular attention in the context of DeFi users seeking new yield opportunities and has integrated with protocols such as Aave and Pendle to form recursive lending structures, allowing users to deposit USDe, borrow, and reinvest multiple times to compound yields. Despite S&P Global assigning a higher risk rating due to its reliance on derivatives, and Chaos Labs warning of risks related to re-collateralization and liquidity pressure, USDe has not experienced any serious de-pegging events to date.

The fee switch is about to be activated, ENA holders will enjoy protocol revenue sharing.

Ethena will pass the ENA "fee switch" proposal in November 2024, but has set three activation prerequisites:

1. The supply of USDe exceeds 6 billion USD (achieved);
2. Cumulative protocol revenue of at least 250 million USD (achieved, currently over 500 million USD);
3. Launch four exchanges among the top five centralized exchanges by derivatives volume (not yet fully achieved).

Currently, only the third item is pending completion, and founder Guy Young stated that it is being prioritized. Once realized, the fee switch will allocate part of the protocol revenue to ENA holders, upgrading the token from a governance asset to an income-generating asset. In addition, StablecoinX (a treasury company focused on stablecoins) plans to list on Nasdaq, which may further direct institutional funds towards ENA.

ENA Token Price and Market Sentiment: Breaking Key Resistance or Starting a Pump

The price of ENA has risen by 8% in the past 24 hours, currently reported at 0.6775 USD, with daily trading volume surging by 133% to 883 million USD. On-chain data shows that recent selling pressure in the 0.60–0.70 USD range has been absorbed by demand, and some analysts believe that after breaking through the 0.70 USD level, it may challenge the 1 USD resistance level.

However, whale activity shows divergence: 80 million ENA have flowed into exchanges in the past two weeks, indicating potential selling pressure. However, most market observers believe that the "flywheel effect" of institutional participation and recursive yield strategies will continue to support demand. ENA currently has a market capitalization of 4.48 billion USD, with a fully diluted valuation (FDV) of 10.16 billion USD, and there is still room for upward movement if accelerated.

Protocol Revenue and Ecosystem Expansion: Weekly Income of 53 Million USD Exceeds Hyperliquid by Two Times

Ethena generated $53 million in protocol revenue last week, more than twice that of Hyperliquid ($22.5 million). The annualized revenue performance is strong, partly due to the current high funding rates (19% for Bitcoin, 12% for Ethereum). In terms of ecological development, the upcoming HyENATrade platform and decentralized exchange Ethereal DEX are expected to further boost revenues, while multi-chain expansion (such as TON network's TVL reaching $87 million in six weeks) and institutional partnerships (such as compliance integration with World Liberty Financial) are also continuously expanding the user base.

Conclusion

The rapid growth of USDe and the imminent activation of the fee switch make Ethena an undeniable force in the stablecoin market. Its derivatives hedging model, although controversial, has shown strong performance in returns. For ENA, breaking through the key resistance at 0.70 USD will be the core focus of short-term trends, while its long-term value will depend on the revenue-sharing effect brought by the fee switch and the level of institutional adoption. Investors need to closely monitor the progress of exchange listings, changes in funding rates, and the on-chain behavior of whales, as these factors may dictate the next price direction.