Ethena's native token, ENA, has attracted attention in the crypto market, gaining 47 percent in value in the last seven days. While general market activity has led to upward movements for many cryptocurrencies, ENA’s rise is driven by a particularly different expectation, according to analysis firm Kairos Research: speculation that a fee-sharing mechanism known as a “fee-switch” will become active. Kairos Research notes that Ethena, unlike other projects, has already established the technical infrastructure for this fee-sharing system, but certain conditions must be met for the system to become operational. Once activated, the fees collected by the protocol will be distributed directly to sENA (staked ENA) holders. According to the analyst firm, most of these conditions have been met so far. The circulating supply of Ethena's US dollar-pegged stablecoin, USDe, has reached $6.08 billion, surpassing the $6 billion threshold. The protocol's cumulative revenues have reached over $431 million, well above the $250 million threshold. Furthermore, the reserve fund size has been set to exceed 1% of the USDe supply. Related News: Whales Are Very Active Today: Here Are the Altcoins They Are Trading However, two key criteria remain unmet. First, USDe must be traded on at least four of the five highest-volume derivatives exchanges. Currently, this number is limited to three. Second, sUSDe's spread remains below the targeted 5% to 7.5% range. The current spreads are 3.03% against AAVE's USDC pool, 2.48% against US Treasuries, and 2.05% against Maker/Sky's sUSDS product. Despite this, investor interest has increased. According to Kairos Research, sUSDe's 30-day average annualized return reached 5.59%, while the current return was 9.74% at the time of writing. The analyst firm notes that institutional investors, in particular, believe these returns will become even more attractive over time, and are therefore pouring capital into the Ethena ecosystem. All these developments are considered to be the main factors supporting the recent price increase in the ENA token. *This is not investment advice. Continue Reading: Why is Ethena (ENA), One of the Most Talked About Altcoins of Recent Days, Going Up? Experts Share the Real Reason
