When it comes to blockchain and decentralized finance (DeFi), Ethena (ENA) is gaining attention for its strong fundamentals despite its current price levels. If you’re wondering whether ENA might be undervalued, the latest metrics suggest an opportunity worth examining.
Why Ethena (ENA) May Be Undervalued
Currently priced around $0.50, Ethena’s value might not fully represent what’s happening beneath the surface. On-chain metrics paint a much healthier picture:
- Impressive Revenue Growth: Ethena earned $42 million in revenue so far, exceeding Q4 2024’s $27 million and showing a dramatic rise of nearly 2,500% from Q2’s $1.82 million.
- Increased Trading Activity: ENA posted a daily trading volume of $633 million, making it one of the most traded DeFi assets today.
- Record TVL Levels: Ethena’s total value locked (TVL) soared to $12.5 billion, an increase of approximately $4 billion in just one month.
- Low NVT Ratio: ENA’s network value to transaction ratio (NVT) stands at around 6.9 — signaling robust throughput relative to its market valuation.
The Growing Role of USDe
A significant factor in ENA’s ecosystem is the skyrocketing adoption of USDe, a stablecoin that reached a $10 billion market cap in just 500 days. This rapid rise underscores growing trust in the Ethena network for financial transactions and DeFi activity.
A Play for Smart Investors?
With on-chain activity, fee generation, and adoption rapidly outpacing price performance, Ethena may be fundamentally undervalued. Its $0.50 price tag could represent a strong entry point for those who believe in its long-term potential. Analysts point to its combination of high daily volumes, strong user engagement, and revenue growth as indicators of a thriving network.
How to Take Advantage of ENA’s Rise
If you’re considering ENA as part of your portfolio, tools like the Ledger Nano X can provide secure storage for your cryptocurrency investments. This hardware wallet supports ENA and other altcoins for peace of mind during volatile market conditions.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always do your own research before investing in cryptocurrencies to understand the risks involved.
