Ethena's $ENA is up 47% over the last 7 days, but what is driving the rally? Aside from positive market tailwinds with crypto asset prices rising across the board, ENA's rally stands out for one key reason: Speculation on Fee-Switch Activation ENA is unique, where the fee switch parameters have already been established, but require certain thresholds to be met or exceeded for it to be formally activated, in which case sENA holders would be the fee recipients. These fees are primarily generated via 10 bip mint fees on USDe, but other protocol revenue streams exist as well. The parameters are: ✅ USDe circulating supply: $6.08bn (threshold: >$6bn) ✅ Cumulative protocol revenue: $431.31m (threshold: >$250m) ❌ CEX adoption: USDe CEX adoption: 3 (threshold: 4 of the top 5 CEX by derivatives volume) ✅ Reserve Fund ≥ 1% of USDe supply ❌ sUSDe APY spread vs benchmark: (threshold: 5.0-7.5%) While the last parameter is not yet within range, the current spreads for sUSDe vs other benchmarks are as follows: Spread vs AAVE USDC: 3.03% Spread vs T-Bill: 2.48% Spread vs sUSDS: 2.05% The avg 30d apy for sUSDe is 5.59% and the current apy is 9.74% at the time of writing. Additionally, the influx of staked sUSDe vs other key benchmarks like Maker/Sky's sUSDS signal that capital allocators expect the spread to widen in Ethena's favor, as seen in the chart below.

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