Ethena’s upcoming fee switch could introduce direct ENA buybacks, possibly fueling major bullish momentum | Credit: Hameem Sarwar
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Key Takeaways
Ethena’s network growth hit a 90-day high after Grayscale added ENA to its DeFi Fund with a 13.59% allocation.
Whale accumulation and rising large-holder wallets suggest growing confidence in ENA despite recent concerns.
ENA could rally to $0.26 if it breaks key resistance, especially as the protocol approaches activating its fee switch.
Ethena has earned its reputation in DeFi the hard way. It has done so by building a protocol that generates real yield in a market full of promises that rarely deliver.
Now, two developments are arriving at the same time that could make ENA, Ethena’s token, as compelling as the protocol.
Yesterday, Ethena’s Network growth hit a 90-day high, proving the ecosystem is not just surviving.
A fee switch countdown proves the protocol is approaching a moment where that expansion becomes directly tied to token value.
For anyone who has been watching Ethena from a distance and waiting for a reason to look closer, that moment may have just arrived.
Grayscale’s ENA Allocation Triggers Increased Activity
The first major catalyst arrived on May 7, 2026, when digital asset management giant Grayscale officially rebalanced its DeFi investment portfolio.
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As part of the restructuring, Grayscale added ENA to its DeFi Fund with a significant 13.59% portfolio weighting.
The move represented a major milestone for Ethena. This is because institutional investment funds typically operate under highly regulated custody and compliance frameworks.
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As a result, the allocation triggered the creation of numerous new institutional custody wallets. Besides that, it significantly increased on-chain activity.
Analysts believe this institutional onboarding wave was the primary driver of Ethena’s network growth metrics, which surged to a 90-day high.
The inclusion also reinforced growing confidence that ENA is increasingly being viewed as one of the leading next-generation DeFi infrastructure assets.
Whale Activity Intensifies
Over the following 48 hours, Ethena became one of the most-discussed protocols on on-chain analytics platforms due to a series of unusually large capital movements.
Also, the number of holders with over 10,000 ENA has reached a new all-time high. If sustained, this could drive Ethena’s price past key resistance zones.
While some traders initially feared the transaction signaled instability, CCN later found out that it clarified that the movement was tied to backend delta-neutral hedging operations rather than panic selling.
Outside, a temporary infrastructure pause involving an Ethena-related LayerZero bridge on May 9 briefly brought the protocol back into the spotlight.
However, rather than triggering sustained panic, the event attracted aggressive dip-buying by traders.
The Fee Switch Matters
The second-largest catalyst behind current ENA accumulation is the growing anticipation around Ethena’s upcoming Fee Switch activation.
Until now, ENA has primarily served as a governance token, with no direct exposure to protocol revenue. That could soon change.
The Ethena Foundation recently confirmed that the Risk Committee’s key milestones have been achieved.
For those unfamiliar, this includes USDe supply exceeding $6 billion, cumulative protocol revenue surpassing $250 million, and deeper integration across major derivatives platforms.
With those benchmarks met, the protocol is now moving toward a governance vote that could officially activate the Fee Switch.
If approved, a portion of Ethena’s revenue would be used for open-market ENA buybacks and value distribution to sENA stakers.
This would introduce direct value accrual to ENA for the first time, potentially transforming it from a governance token into a yield-generating DeFi asset.
This was after it spent months in a prolonged downtrend.
The chart highlights a major descending resistance line that has capped price action since late 2025, and ENA is now pressing up against it in the $0.12 region.
Furthermore, the price is trading above the Supertrend indicator for the first time in months, suggesting momentum is shifting to the bullish side.
At the same time, the Money Flow Index (MFI) is climbing toward 65, indicating that buying pressure is increasing without yet reaching extreme overheating.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
