How high can the ENA currency go? Forecast of future prospects

Why is everyone optimistic about ENA’s market value? Ethena Labs is the fastest-growing player in the highly profitable space of stablecoins — as evidenced by the skyrocketing earnings of the likes of Tether and Maker. Now everyone is very optimistic about ENA currency, why? What is the future prospect of ENA currency? What is the future valuation of ENA currency? Below, the editor of this website will give you a detailed introduction to the valuation of ENA currency and why it is viewed by everyone. I hope you like it!

#Ethena Labs is the fastest growing player in the highly profitable space of stablecoins – as evidenced by the skyrocketing earnings of the likes of Tether and Maker. I am a big supporter of non-crypto-backed stablecoins, and projects that can solve the stablecoin trilemma will have huge market opportunities.

USDe’s TVL surged to $2.3 billion. Ethena quickly became the highest-yielding DeFi protocol, behind only ETH and MKR.

Interestingly, after the recent leverage craze, I was blown away by its TVL resiliency, and how flawlessly the protocol manages redemptions and USEe pegs. This will boost market confidence in the product and attract a large number of USDe holders when the market rebounds.

1. Be optimistic about USDe

sUSDe provides a scalable way to obtain double-digit Market neutral returns make it an effective alternative to USDT/USDC. As the Anchor protocol showed in the last cycle (ATH TVL: $18 billion), the need for stable returns is very high. I hope that traders, exchanges, funds, etc. will retain some USDe stablecoins while gradually deploying funds.

Seraphim and his team quickly integrated USDe into large DeFi protocols, including Frax Finance, Pendle, Morpho Labs, and others, and USDe showed early signs of DeFi expansion. With the upcoming CeFi integration (Bybit being the first), USDe has the potential to become one of the largest stablecoins.

The growth of BTC and SOL collateral may not have been taken into account. This could significantly expand TAM and bring USDe’s TVL over $10 billion this cycle.

2. Valuation

When comparing ENA to lending protocols and stablecoin protocols on TVL, fees, and revenue metrics, ENA appears to be overvalued under a fully diluted scenario. However, in the MC (market capitalization) dimension, the valuation seems reasonable.

I think MC is a more appropriate indicator, at least in the short term, as the first major unlock will open in early 2025. Until then, the floating range will remain around 10-20%.

3. Data prediction

Basically, I expect ENA TVL to grow to approximately US$10 billion. This will enable it to earn over $1 billion in fees and generate over $500 million in revenue based on USDe utilization (or sUSDe exchange rate). ENA's upside potential could be 5-10 times, which would mean a market capitalization of $5-10 billion.

The premise of these predictions is that the prosperity of this cycle is no less than that of the previous cycle.

4. Risks

The design risks of Ethena are basically well handled. However, a more pressing question is how they will manage TVL once the Points/Shards program ends. They are able to generate high protocol revenue and offer exceptionally high exchange rates to sUSDe holders, in large part due to USDe’s low collateralization rate (currently around 13.5%). Essentially, currently USDe holders are encouraged not to stake to earn more “points/shards”.

After the points program ends, USDe holders will not accumulate any value, which means there will not be any natural demand for USDe. I expect that some of the proceeds will be shared with USDe holders, or that the sUSDe/USDe exchange rate will approach 100% and the protocol revenue will decrease, thereby reducing the utility of ENA.

But I believe that Ethena’s founder and team will have some strategies to deal with this problem in the future.

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