ENA: A Cinderella of Crypto, Undervalued and Underappreciated?

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Key Takeaways

Amidst the cacophony of crypto, Ethena (ENA) whispers tales of fundamental strength. Despite a tepid price, record TVL, robust daily volume, a whisper-thin NVT, and the meteoric rise of USDe suggest a network ripe for appreciation.

At first glance, Ethena [ENA] might appear as docile as a sleeping kitten. Yet, beneath this veneer of tranquility lies a creature of surprising vigor. On August 21, ENA experienced a fleeting 19.5% surge following a $260 million buyback, only to wilt like a flower in the desert sun, failing to establish a foothold at $0.70. It retreated to the comfort of $0.50, marking the third lower low this month. 🌞

However, the on-chain narrative paints a different picture, one of burgeoning vitality. Ethena has been quietly amassing real activity, with DeFiLlama reporting a staggering $117 million in Q3 fees-a 150% leap from Q2. This is not merely a blip; it’s a testament to the protocol’s growing allure. 📈

The revenue trajectory is equally compelling. Ethena has raked in $42 million thus far, surpassing Q4 2024’s modest $27 million. When juxtaposed with Q2’s meager $1.82 million, the 2,500% spike is nothing short of a financial fireworks display. 🎇

And then there’s USDe, the prodigal son of stablecoins, which scaled to a $10 billion market cap in a mere 500 days-eclipsing its peers in both speed and scale. So, the question lingers: Is ENA fundamentally undervalued? 🤔

Ethena’s Network Activity Outpaces Price

Ethena’s on-chain activity is a veritable symphony of growth, while its price remains a reluctant dancer. For instance, Ethena boasts a daily trading volume of $633 million, placing it among the most active DeFi assets. Its Total Value Locked (TVL) has reached a record high of $12.5 billion, with an impressive $4 billion added this month alone. 💰

With a market cap of $4.35 billion, ENA’s Network Value to Transaction (NVT) ratio stands at a modest 6.9-a figure that speaks volumes about the network’s efficiency and health. 📊

In essence, Ethena appears to be fundamentally undervalued. High daily trading volume, record TVL, a low NVT, and robust revenue and fee growth all point to a network brimming with life and promise. Meanwhile, on-chain activity, value capture, and the rapid adoption of USDe are outpacing the price, making ENA’s current $0.50 level a tantalizing opportunity for the discerning investor. 🚀

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2025-08-29 11:06