Ethena (ENA) Continues to Underperform Despite USDe's Growth Due to Structural Tokenomics

• Ethena's ENA token has dropped over 93% from its all-time high to $0.13 as of February 2026, entering a critical demand zone.
• Structural misalignments in Ethena's tokenomics, including an excessive 15B ENA supply and fee distribution skewed toward derivatives, are cited as key reasons for the disconnect between protocol growth and token price.
• Multiple token unlocks, including a February 2 release of 40.63M ENA, have introduced additional sell pressure, testing market absorption and psychology.

Ethena's ENA token has seen a sharp decline in early 2026, despite the success of the USDe stablecoin, which now has a TVL of $16B and a market cap of $4.6B according to reports. This divergence highlights structural challenges within the tokenomics of the Ethena protocol. Analysts note that the mismatch between protocol growth and token value is driven by an imbalanced allocation of fees and excessive supply dynamics.

The recent unlock of 40.63M ENA tokens has introduced short-term volatility, though Ethena is implementing governance optimizations to mitigate the impact as reported. Projects like 'Converge' aim to incentivize staking and long-term engagement with ENA. However, token unlocks continue to exert downward pressure on the price, with over 45% of the 15B ENA supply already released by early 2026.

The ENA token's price has fallen into a well-defined descending channel, with analysts closely watching the $0.08–$0.06 support zone for potential reversal signals. Retail investors are viewing this as a potential opportunity as the token approaches these levels. Institutional adoption and regulatory developments could play a major role in shaping ENA's price action moving forward.

Why Is Ethena's Tokenomics a Concern for Investors?

Ethena's tokenomics model has been criticized for its excessive supply of 15B ENA, with over 7.96B already in circulation. This creates persistent downward pressure on the token price due to ongoing unlocks and liquidity events. The allocation of fees is also a concern, with 92% going toward derivatives, while only 6% is attributed to Ethereum staking and 7% to liquid stables. This misalignment limits the direct value capture for ENA holders.

The activation of the 'fee switch' in September 2025 was an attempt to improve incentives for ENA stakers, but it has not yet solved the broader issue of insufficient revenue diversification. Analysts argue that without mechanisms such as token burns or buybacks, the ENA price is likely to remain under pressure. Additionally, ENA's governance utility is limited compared to other stablecoin models, which further restricts its value accrual potential.

What Is the Outlook for Ethena's Ecosystem Growth and ENA Price Action?

Despite the sharp decline in ENA's price, Ethena's ecosystem continues to expand, with USDe growing into one of the largest stablecoins with a supply near $5.8B. The project has also announced plans to route protocol revenue to stakers in 2026, which could offer additional value to token holders. Ethena is also developing an institutional product tied to USDe and planning to launch its own blockchain, which may attract renewed interest in the project.

Looking ahead, analysts are closely monitoring key support levels and broader market sentiment. A clean break below the $0.08–$0.06 support zone could signal further downside, while a strong rebound may indicate a potential trend reversal. The Fear & Greed index is currently at 16, reflecting extreme investor fear, with bearish sentiment dominating the market.

The Ethena token unlock of 40.63M on February 2 is part of a broader trend of token unlocks across the crypto ecosystem. While this specific unlock accounts for only 0.55% of the circulating supply, its impact is amplified by macroeconomic dynamics and investor sentiment. Ethena's ongoing governance improvements and ecosystem expansion efforts will be key factors in determining its long-term trajectory.

The broader market conditions and macroeconomic factors will continue to influence ENA's price action in the coming months. Institutional adoption and regulatory clarity could provide significant tailwinds for the project, particularly if USDe continues to expand its utility through initiatives like USDtb and iUSDe. However, until these developments are realized, structural issues in Ethena's tokenomics are expected to remain a limiting factor for ENA's price performance.