Defi Protocol Ethena’s Governance Token Ena has risen by 43% this week and climbs above 50 cents. It is now the second best performing top 100 token at market value, Nutel Rear Curve’s CRV, per Coingecko.
The catalyst for the rally is speculation about the activation of the cost switch mechanism for Ethena Staked Ena (Sena) token holders, according to Kairos Research.
The reimbursement switch, initially proposed by market maker Wintermute and later approved by the Ethena Foundation in November 2024, makes sharing protocol income with Sena holders possible. The income mainly comes from mint costs on Usde, Ethena’s synthetic dollar, which has a market capitalization of more than $ 6 billion, as well as other protocol income flows, and is shared once specific parameters are paid.
These parameters include a used -circulating range of more than $ 6 billion, cumulative protocol income that surpassed a lifespan of $ 250 million, used integration on four of the top five centralized scholarships by derived volumes and the reserve fund that grows up to 1% or more of the user. Moreover, it calls for increasing the spread between the annual percentage yield on Steates -IUDE (SUSDE) and other benchmarks, such as Aave’s USDC.
From Sunday, the circulating range of the Usde, the cumulative protocol income and the reserve fund surpassed the thresholds mentioned above, according to data followed by Kairos Research.
Usde statistics. (Kairos Research)
“Ena is unique, where the parameters for switching the costs have already been established, but require that certain barriers must be paid or exceeded to be formally activated, in which case Sena holders would be the recipients of the reimbursement,” said Kairos Research about X.
It added that the last parameter, which followed the APY spread, still had to be reached, with market flows that suggest that it could happen quickly.
“The influx of Stutede susde versus other important benchmarks such as Maker/Sky’s Suss signaling that capital allocators expect the spread to grow in favor of Ethena,” noted.
Apart from the potential activation of the reimbursement switch, the overall bullish trend in the cryptomarkt contributes to the upward momentum of the ENA toky. The Usde of the protocol recently attracted more than $ 750 million in fresh inflow, as Coindesk noticed early today.
Read more: Ethena’s Ena rises 20% because the protocol sees $ 750 million inflow in the midst of rising crypto financing percentages
