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.
Source: DeFiLlama
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 – Marking a relatively low figure that hinted at healthy network throughput relative to valuation.
Source: DeFiLlama
In short, Ethena appears to be fundamentally undervalued.
High daily trading volume, record TVL, low NVT, and strong revenue and fee growth all are signs of healthy network fundamentals. They all imply robust adoption and strong user engagement.
Meanwhile, on-chain activity, value capture, and USDe adoption are outpacing the price, making ENA’s $0.50-level a solid dip play.
