Ethena’s Fee Switch Could Drive ENA Price Rally in Q4

Published: 2025-09-03 02:22:34 |

Ethena’s stablecoin USDe saw a 42% supply jump to $12.43 billion in August, fueling protocol revenue to a year-high $61 million. The proposed fee switch would grant ENA token holders direct access to these earnings, potentially strengthening long-term fundamentals and sparking a price rally in Q4. ENA is trading at $0.68 (+7% 24h), with a market cap of $4.47 billion and daily volume of $890 million. Technically, ENA is consolidating around $0.67, facing resistance at $0.72 and support at $0.63. A break above $0.70 could pave the way to $0.75. Since inception, Ethena has generated over $492 million in fees, including quarterly peaks of $145 million (Q4 2024) and $98 million (Q3 2025). USDe staking yields about 9%, outperforming USDC yields on Aave. Upcoming catalysts include potential rate cuts, HyENAtrade launch, an Ethereal DEX rollout and a Nasdaq listing for StablecoinX. While the fee switch may boost ENA demand, similar DeFi fee activations have sometimes triggered 10–20% sell-offs, suggesting possible short-term volatility.

Bullish

The news is classified as bullish because the proposed fee switch aligns ENA’s governance token with direct revenue streams, a structure that typically heightens demand among investors. Historical precedents—such as Uniswap’s fee activation—have improved token utility and sparked renewed buying interest, despite short-term sell-offs. Ethena’s robust USDe supply growth (+42% in one month), $492 million in cumulative fees and 9% staking yield further strengthen fundamentals. Technical indicators show ENA consolidating near $0.67, with a clear breakout path above $0.70 toward $0.75, suggesting near-term upside. Additionally, upcoming catalysts—interest-rate decisions, HyENAtrade, Ethereal DEX and a potential Nasdaq listing—add positive momentum. While fee switches can trigger immediate profit-taking, the long-term alignment of token economics and revenue sharing usually results in sustained price support, making this development overall bullish for traders.