Ethena's ENA Surges 43% as Fee-Sharing Mechanism Nears Activation

Ethena’s native token, ENA, has surged 43% to become the second-best-performing token among the top 100 by market capitalization, driven by on-chain activity, institutional interest, and the activation of its fee-sharing mechanism [1]. The protocol’s synthetic dollar strategy—combining its algorithmic stablecoin USDe and BlackRock-backed USDtb—has also fueled growth, positioning Ethena as a key player in decentralized finance (DeFi) [3]. The fee-sharing mechanism, a critical catalyst, is nearing activation, with two of three required technical thresholds already met, according to Kairos Research [2].

The protocol’s cumulative revenues have surpassed $431 million, while USDe’s circulating supply exceeds $6.08 billion. However, challenges remain in expanding USDe’s presence on derivatives exchanges and narrowing sUSDe spreads to 5%–7.5%. Institutional confidence is evident, with sUSDe’s 30-day annualized return reaching 9.74% as of July 21, reflecting strong demand for yield-generating assets [2].

On-chain data highlights further momentum, including a deposit of 60 million ENA tokens ($30 million) into Binance and Bybit by two “whale” holders [4]. While such movements often signal potential sell-offs, analysts suggest they may indicate accumulation amid Ethena’s strategic initiatives. Concurrently, a new entity, StablecoinX, has announced a $360 million fund to purchase ENA tokens and pursue a Nasdaq listing [1]. This aligns with a broader trend of crypto protocols leveraging traditional capital markets to boost liquidity and institutional adoption [5].

StablecoinX’s $5 million daily accumulation plan underscores confidence in ENA’s long-term value, as the firm prioritizes token purchases over traditional tech or mining investments [6]. The governance model remains central, with the fee-switch mechanism’s activation potentially redefining how token holders engage with protocol economics [2]. Analysts note that Ethena’s success will hinge on balancing reserve fund management with demand-side innovations like sUSDe yields.

The recent price surge, while reflecting short-term optimism, faces the challenge of maintaining competitive spreads in DeFi markets and resolving remaining activation criteria for the fee-sharing mechanism [2]. Ethena’s ecosystem developments, including governance alignment and institutional partnerships, position it to capitalize on evolving crypto dynamics, though sustained growth will require addressing operational hurdles and market competition.

Sources:

[1] [Ethena's ENA Soars 43%. What's Fueling the Explosive Rally](https://www.coindesk.com/markets/2025/07/21/ethena-s-ena-soars-43-what-s-fueling-the-explosive-rally)

[2] [ENA Token Surges 47% on Fee-Sharing Mechanism Expectations](https://www.ainvest.com/news/ena-token-surges-47-fee-sharing-mechanism-expectations-2507/)

[3] [Ethena's Explosive 43% Rally: A Governance Token Powering a Synthetic Dollar Revolution](https://www.ainvest.com/news/ethena-s-explosive-43-rally-a-governance-token-powering-a-synthetic-dollar-revolution-25071010e01f09c52179215b/)

[4] [ENA Whale Alert: Two Whales Deposit 60 Million ENA ($30M) to Binance and Bybit](https://blockchain.news/flashnews/ena-whale-alert-two-whales-deposit-60-million-ena-30m-to-binance-and-bybit-signaling-potential-sell-off)

[5] [ENA Price News: Ethena Joins Crypto Treasury Trend With $360M Deal](https://www.allsides.com/news/2025-07-21-1000/business-ena-price-news-ethena-joins-crypto-treasury-trend-360m-deal)

[6] [StableCoinX Strengthens Ethena [ENA] Rally With $5M Daily Accumulation Plan](https://ambcrypto.com/stablecoinx-strengthens-ethena-ena-rally-with-5m-daily-accumulation-plan-details/)