Ethena Labs Nears Fee Switch Activation With USDe Milestones

Ethena Labs, led by Guy Young, is set to activate a profit-sharing model for ENA holders following a surge in USDe’s supply, now the third-largest USD stablecoin.

This milestone achievement potentially reshapes DeFi market dynamics, enhancing Ethena’s position, and indicates increasing competition among stablecoins, impacting ENA token valuation and broader crypto investment strategies.

USDe Surges to $12.43B, Influencing ENA Fee Switch

Ethena Labs has achieved notable growth, with USDe supply increasing by 42% to hit $12.43 billion. This development positions USDe as the third-largest USD stablecoin, only behind USDT and USDC. The protocol is on the cusp of enabling a profit-sharing fee switch for ENA holders.

Guy Young, Founder & CEO, Ethena Labs, stated, “USDe has reached $12bn supply, protocol revenue at ATH, and the team is focused on the fee switch milestone for ENA holders.”

The crypto community is closely monitoring the integration with centralized exchanges, as this will finalize the conditions for the fee switch activation. Guy Young, Ethena Labs CEO, noted on X that their focus is on completing this final milestone.

Exchange Integration Seen as Critical for Milestone

Did you know? Ethena Labs’ imminent fee switch parallels the strategy employed by Uniswap, where lengthy discussions led to profit-sharing activation, affecting governance token valuation.

As of September 2, 2025, Tether USDt is priced at $1.00 with a market cap of $168.02 billion, a market dominance of 4.39%. Trading volume was $129.21 billion, reflecting a recent 8.09% change. The Coincu research team suggests that Ethena’s integration with top exchanges could lead to enhanced liquidity for USDe, potentially impacting stablecoin market dynamics. Additionally, the activated fee switch may bolster ENA’s appeal among DeFi participants.

The protocol is on the cusp of enabling a profit-sharing fee switch for ENA holders.