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Based on Ethena's current yield levels, token holders can expect highly competitive returns.
Recently, we have all witnessed ENA's explosive surge—its price has skyrocketed, capturing widespread attention at an astonishing pace.
In less than a year, USDe's supply has surged from $0 to over $6 billion, surpassing DAI to become the third-largest decentralized stablecoin, trailing only USDT and USDC.
The sUSDe annualized yield has reached 10%, making it the highest sustainable yield in the crypto space today. This yield surge is driving aggressive recursive arbitrage strategies on platforms like Aave and other DeFi protocols.
Funding rates are also climbing—Bitcoin’s funding rate stands at 19%, while Ethereum’s is at 12%, marking the first time in six months that both have breached the 11% benchmark.
Ethena’s weekly revenue has hit $7.8 million, with an annualized projection exceeding $400 million. There’s still room for growth, as Ethena has shifted 41% of its stablecoin reserves into higher-yielding perpetual futures strategies, with the average market funding rate now at 14%.
This higher yield also fulfills a key condition for activating ENA’s fee switch: sUSDe’s yield must exceed Sky Savings’ current rate (4.5%) by at least 5%—a milestone that has now been achieved.
Ethena’s business model thrives on market volatility and high perpetual funding rates.
Unlike traditional stablecoins (e.g., USDC or USDT), which rely on Treasury bond yields, Ethena generates revenue through a delta-neutral strategy: long spot positions paired with short perpetual futures.
When funding rates are high, Ethena earns more. Consequently, many predict that if the Fed begins cutting rates in late 2025, Ethena will benefit even more.
In fact, following the latest rate cut in December 2024, Ethena recorded a monthly revenue high of $12 million.
Ethena has rapidly ascended to become a top-tier DeFi protocol by TVL, now exceeding $6 billion, alongside nearly $400 million in revenue, making it one of the most profitable DeFi projects today.
Three flagship products are driving Ethena’s expansion:
Ethereal: A decentralized perpetual exchange with $712 million TVL.
Terminal: A liquidity hub for tokenized assets, currently at $129 million TVL.
Strata: A structured yield product with $13 million TVL.
Additionally, Ethena is expanding across multiple chains:
USDe’s trading volume on Bybit has surpassed USDC ($540M vs. $444M).
On the TON network, USDe’s TVL has reached $87 million in just six weeks.
Ethena recently announced a partnership with StablecoinX, an asset management firm planning to list under the ticker USDE on Nasdaq.
This funding round attracted top crypto VCs like Pantera, Dragonfly, and Wintermute, raising $360 million.
Of this, $260 million will be used for ENA buybacks over the next six weeks, absorbing nearly 8% of the circulating supply.
StablecoinX will permanently hold ENA on its balance sheet, reducing market supply to support long-term protocol growth.
While the factors above have fueled ENA’s rise, the real catalyst remains the fee switch.
Despite strong market performance, ENA and sENA tokens currently lack a direct value-capture mechanism.
To address this, Wintermute’s governance team has proposed activating the fee switch, allowing token holders to share in protocol revenue.
This mechanism will enable sENA holders to earn a portion of Ethena’s income, transforming ENA from a mere governance token into one with real yield potential.
Five conditions must be met to activate the fee switch. As of July 2025, four have already been achieved:
USDe supply > $6 billion
Cumulative revenue > $250 million
1% of total supply in reserve funds
Yield spread ≥ 5%
The final remaining condition is USDe’s listing on Binance or OKX (it’s already available on Bybit, MEXC, and Bitget).
Once this is completed, the fee switch can be activated, allowing sENA holders to start earning a share of Ethena’s profits.
Given Ethena’s current earnings, token holders stand to gain highly competitive yields.
Once the fee switch is flipped, ENA is set to soar.
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