Ethena’s synthetic dollar, USDE, reached a market capitalization of $10 billion in just 500 days. This move solidifies its position as one of the fastest growing, ridiculous positions in the history of code.
However, skepticism about USDE remains, suggesting that it could be the UST of this cycle.
Ethena and USDE Stablecoin’s $10 billion milestone sets the stage for the next phase of growth
Ecena broke $100 million on Sunday with a $10 billion TVL (with total locked) and nearly doubled within a month. This week has been one of Ecena’s highest-paying weeks to date, with the protocol generating more than $475 million in fees.
Supply has doubled in the past month alone. This is a trajectory where investors are paying attention to the next explosive phase.
According to analyst Crypto Stream, Ethena’s governance and protocol token, ENA may be trying to unlock its powerful new revenue engine. Four of the five governance mandatory conditions to activate Ethena rate switching have already been met.
Ethena’s governance framework provides an overview of strict thresholds for activating fee delivery.
USDE exceeds $8 billion – Finished. Protocol revenues exceed $25 million. Fill at least 1% of the supply – reserves. Susde Apy has expanded within the 5.0-7.5% range. Three USDE integrations for the top 5 derivative exchanges – not yet fulfilled.
Analysts say this will pave the way protocol revenue is distributed to ENA owners. The final hurdle is a list about either Binance or OKX Exchange.
“Price switching is turned on: Ecena is a revenue monster. At some point, revenue leaks to Ena,” posted by Crypto Stream, calling ENA the biggest spot position.
OKX and Binance Exchange remain missing integrations. Regulatory issues under the EU’s MICA (Crypto Assets Market) framework first blocked two-way from the USDE list.
Still, off-boarding EU users could clear the path of the global USDE list for popular exchanges earlier this month.
Converge can turn Ethena into Aldawhouse
The price switching marks major milestones, but some are seeing even bigger prizes. Analyst Jacob Canfield pointed to a long-term plan to launch Esena’s blockchain. It uses ENA as the protocol token.
In this model, ENA owners can wager the token on the validator to obtain a percentage of transaction value. This will turn the ENA into a yielding asset related to the economic activity of the network.
Meanwhile, Ecena’s roadmap goes beyond the growth of its code origins. Crypto Stream highlighted the planned NASDAQ list for Stablecoinx (TCO) for the fourth quarter, giving potential institutional investors a direct exposure to the Ecena ecosystem.
Circle’s past success at USDC demonstrates the significant demand for regulated stubcoin vehicles from traditional finance (TRADFI).
Meanwhile, Defiance Capital founder Arthur Cheong believes that large funds underestimate Ecena due to the unlocking schedule of tokens.
“You guys don’t know how much money they have…we casually rejected $ENA for the simple reason: “too many unlocks,” ignoring potential growth in the future and team tier execution,” Chung said.
But nonetheless, Ecena’s meteor rise drew comparisons to Terra’s unfortunate UST, which collapsed in 2022.
The USDE then becomes the third largest Stablecoin, following the passage of a genius act. Critics warn that synthetic silly silly faces inherent vulnerabilities, especially in stressful market conditions.
However, Guy Young, founder of Ecena, rebutted by pointing out integrated risk control and a variety of Defi collateral designed to mitigate the risk of depegging.
When USDE Stablecoin Binance or OKX integration occurs and the pricing switch is activated, Ethena can see the protocol revenue that Macro Tailwinds are redirected to the ENA holder, just like Align.
In such a scenario, a low Federal Reserve rate, which historically correlates against crypto funding costs, could increase the profitability of Ecena.
With USDE adoption expanding, the growing reserves, and the looming converge chain, pieces could fall into place.
At the time of writing, Ecena had traded over 3% at $0.7759 in the last 24 hours.
The reason analysts call it ENA is that this cycle bets the biggest Altcoin that first appeared in Beincrypto.
