Why Ethena (ENA) is Poised for a Major Price Surge: A Strategic Investment Play for Q3 2025

Ethena (ENA) has emerged as one of the most compelling investment opportunities in the DeFi space during Q3 2025, driven by a confluence of on-chain liquidity inflows, explosive Total Value Locked (TVL) growth, and robust technical patterns. As the ecosystem’s synthetic stablecoin, USDe, expands to a $12.4 billion supply without a single depeg, the project’s fundamentals and market dynamics suggest a high-probability breakout scenario. This analysis dissects the key drivers behind ENA’s momentum and why it could be a strategic play for investors seeking exposure to the next phase of DeFi innovation.

On-Chain Liquidity Inflows Signal Institutional Confidence

Ethena has recorded four consecutive weeks of on-chain liquidity inflows, with a 15% increase in liquidity over the past month [1]. This surge is not merely speculative but reflects institutional-grade demand. For instance, a single investor recently transferred $1.29 million from a PEPE position to ENA, bringing their total holdings to $10 million—a move that underscores the token’s growing appeal as a store of value [1]. Meanwhile, Ethena Labs reported $7.43 million in Q3 earnings, a 545% jump from the previous quarter, driven by the expanding utility of USDe [1].

However, not all on-chain activity is bullish. 80 million ENA tokens were sent to exchanges in the past two weeks, raising concerns about potential whale offloading [2]. Yet, this activity must be contextualized: Ethena’s TVL has surged to a record $12.66 billion, and its synthetic dollar’s market cap now exceeds $9.7 billion [3]. The net effect of these dynamics is a project that is simultaneously attracting retail and institutional capital while maintaining its peg and utility.

TVL Growth and Network Metrics Suggest Undervaluation

Ethena’s TVL has grown to $12.66 billion, up from $8.6 billion in June 2025, reflecting a 47% quarter-over-quarter increase [1]. This growth is underpinned by USDe’s cross-chain expansion to 23 blockchains and its high annual percentage yield (APY), which has driven $743 million in weekly trading volume [2]. The Network Value to Transactions (NVT) ratio for ENA stands at 6.9, a level historically associated with undervaluation [3]. For context, Bitcoin’s NVT ratio typically ranges between 10 and 20 during bull markets, suggesting ENA’s current valuation is significantly discounted relative to its transactional activity.

Moreover, Ethena’s fee-switch activation and daily buybacks are reducing the circulating supply, creating a scarcity premium. Institutional investors now hold 30% of the circulating supply, a 15% increase from mid-2025 [2]. This accumulation, combined with the token’s growing utility in yield-generating protocols, positions ENA as a deflationary asset with strong tailwinds.

Bullish Technical Patterns and Market Sentiment

From a technical perspective, Ethena has broken out of a bullish flag pattern, a classic continuation pattern that suggests a potential move to $0.88 or even $1 [1]. The 50-day and 200-day Exponential Moving Averages (EMAs) recently formed a golden cross, a historically significant bullish signal [4]. This crossover, which preceded an 87% rally in 2024, has rekindled optimism among traders [4].

The Relative Strength Index (RSI) for ENA currently stands at 68.84, indicating that the token is not yet overbought and has room to rise [1]. Meanwhile, the MACD has confirmed a bullish crossover, with green histogram bars rising above the zero line [5]. These indicators align with on-chain data showing that traders are moving ENA into private wallets, a behavior typically associated with long-term holding strategies [1].

Analysts project that Ethena could test key resistance levels at $0.84–$0.87 and the psychological $1.00 level in the coming weeks [2]. A confirmed breakout above $1.00 could propel the token toward $1.25–$1.50, assuming sustained demand and institutional support [2].

Strategic Implications for Investors

Ethena’s confluence of on-chain strength, TVL growth, and technical momentum creates a compelling case for a strategic investment. The project’s synthetic dollar, USDe, is a critical differentiator, offering a stable, cross-chain asset that complements ENA’s tokenomics. With TVL growth outpacing competitors like Hyperliquid (which generated $22.5 million in revenue last week versus Ethena’s $53 million [2]), Ethena is well-positioned to capture a larger share of the DeFi market.

However, investors should remain cautious of short-term volatility. The recent transfer of 80 million ENA tokens to exchanges could introduce selling pressure, particularly if macroeconomic conditions deteriorate [2]. That said, the broader trend of whale accumulation and institutional adoption suggests that any pullbacks are likely to be short-lived.

Conclusion

Ethena (ENA) is at an inflection point in Q3 2025, with on-chain liquidity inflows, TVL growth, and bullish technical patterns converging to create a high-conviction trade. As USDe’s supply expands and the project’s fee-switch mechanism reduces supply, ENA’s scarcity premium and utility are set to drive further adoption. For investors seeking exposure to the next phase of DeFi innovation, Ethena offers a rare combination of fundamentals and momentum that could translate into outsized returns.

Source:
[1] Why Ethena [ENA] can reach $0.88 soon, if not $1 [https://ambcrypto.com/why-ethena-ena-can-reach-0-88-soon-if-not-1/]
[2] Ethena Price Rides 8% Surge: Is $1 Next for ENA Crypto? [https://www.banklesstimes.com/articles/2025/09/02/ethena-crypto-price-rides-8-surge-is-1-next-for-ena/]
[3] Is ENA Undervalued? Ethena's Network Metrics Suggest ... [https://thecurrencyanalytics.com/altcoins/is-ena-undervalued-ethenas-network-metrics-suggest-a-buying-opportunity-193496]
[4] Ethena prints golden cross that preceded 87% rally in 2024 [https://www.mexc.com/fa-IR/news/64637]
[5] Ethena Price Aims $1 With Golden Cross & Whales Stashing Big [https://coinpedia.org/price-analysis/ethena-price-aims-1-with-golden-cross-whales-stashing-big/]