Ethena Protocol Advances Fee‑Switch Proposal Amid Rising TVL

Ethena’s total value locked (TVL) surged to an all‑time high of $10.4 billion, marking a significant increase from the protocol’s 52‑week low of $0.224 million. The rise in TVL occurred shortly before the launch of spot trading for the ENA token on OKX, where the token opened at $0.678 USDT. Despite the growth in TVL, the ENA price fell 13 % to $0.70955 on September 16, 2025.

Fee‑Switch Development

• Risk Committee Approval (Sept 12)
  The Ethena Foundation announced that the protocol met the fee‑switch parameters defined by the Risk Committee. This milestone is a prerequisite for redirecting a portion of protocol fees to ENA holders.

• Governance Vote (Sept 15–16)
  Multiple outlets reported that the Foundation is preparing for a community vote. The vote will determine whether the fee‑switch, which would allocate revenue to ENA token holders, is activated.

• Pending Sign‑off (Sept 16)
  The foundation confirmed that the fee‑switch activation still requires sign‑off from the Risk Committee on the implementation details. This step follows the successful completion of key requirements and precedes the final governance decision.

• Implications for ENA Holders
  If approved, the fee‑switch would create a new revenue‑sharing channel for ENA holders, potentially improving the token’s long‑term yield. Analysts note that the upcoming decision aligns with the Foundation’s strategy to enhance token value through active governance participation.

Market Context

• TVL Milestone
  The $10.4 billion TVL reflects investor confidence in Ethena’s DeFi offerings, despite a recent decline in the token’s price.

• Spot Trading Launch
  OKX’s introduction of ENA/USDT spot trading at $0.678 coincides with the protocol’s fee‑switch preparations, indicating a coordinated effort to increase liquidity and market participation.

• Price Trend
  The ENA price, recorded at $0.70955, remains below its 52‑week high of $1.32773 (achieved on 2024‑12‑15) and above its 52‑week low of $0.224254 (set on 2025‑06‑21). The recent 13 % decline follows the TVL announcement and spot‑trading launch, suggesting short‑term volatility linked to protocol updates.

Conclusion

Ethena’s protocol is at a critical juncture: a record TVL and the introduction of spot trading provide a strong foundation, while the pending fee‑switch approval could redefine the revenue model for ENA holders. Market participants will monitor the governance vote and subsequent sign‑off closely, as these actions are likely to influence the token’s price trajectory and overall market perception.