Key Takeaways

Ethena may be fundamentally undervalued. However, record TVL, strong daily volume, low NVT, and rapid USDe adoption are signs of strong network fundamentals.

On the surface, Ethena [ENA] may seem quiet. 

ENA popped by 19.5% on 21 August after a $260 million buyback, but the move ran out of steam when $0.70 couldn’t flip into support. The price dropped back to $0.50, marking the third lower low this month. 

However, the on-chain picture might be healthier. Ethena has been stacking real activity, with DeFiLlama reporting $117 million in Q3 fees so far. In fact, it’s up more than 150% from Q2 – A sign of growing protocol usage.

The revenue growth tells us a similar story too. 

Ethena has pulled in $42 million so far, outperforming Q4 2024’s $27 million despite market noise. Compared to Q2’s $1.82 million, that’s a nearly 2,500% pop, signaling ENA may be economically sustainable.

Layer in USDe after it scaled to a $10 billion market cap in just 500 days, and you have the fastest-growing among top stablecoins. Hence, the question – Is ENA fundamentally undervalued?

Ethena’s network activity outpaces price

Ethena’s on-chain activity is now outpacing what the price reflects.

For instance – Ethena recorded $633 million in daily trading volume, placing it among the market’s most active DeFi assets. Supporting this activity, its TVL hit a record $12.5 billion, adding roughly $4 billion just this month. 

With a $4.35 billion market cap, ENA’s NVT came in at around 6.9 – Ma

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Author: Ritika Gupta