Why do analysts call Ethena (ENA) the biggest emerging coin investment of this cycle?

Ethena (ENA) is thriving. After several weeks of strong performance, the trading price of ENA has stabilized in the middle $0.80 range, with a quite considerable trading volume over 24 hours—such price movements have allowed bulls to maintain control in mid-August. The reasons driving this change include: the rapid growth of USDe (Ethena's synthetic dollar), discussions about turning on the "fee switch" for token holders, and improved issuance dynamics. For traders, airdrop hunters, and anyone studying the fundamentals of blockchain and cryptocurrency, there are many reasons for many desks to be optimistic about ena in this cycle—along with possible points of theoretical breakdown.

Today's ENA Price and Market Structure (ENA Price)

On most dashboards, ENA is in the range of $0.80–$0.86, having cleanly broken through previous resistance. This places the price well above the key support level of $0.70—now a level that bulls may defend during a pullback. The circulating supply is in the billions, making ENA one of the larger DeFi governance tokens by market cap. To facilitate this, Gate offers ENA/USDT spot trading with real-time depth and mobile alerts, which help determine entry timing during rapid fluctuations.

##USDe is the Engine: Why ena Drives Stablecoin Growth (ena Fundamentals)

The key to the bullish case for ena is simple: the adoption of USDe. Ethena's crypto-native, delta-neutral stablecoin aims to maintain its peg while generating returns through basis trading (going long on spot and shorting perpetual contracts). As the supply, integration, and usage of USDe expand in the DeFi and CeFi spaces, the revenue opportunities and network effects of the protocol improve—driving a flywheel that tends to support ena during risk-on phases.

How Ethena Works - And the Role of ena (ena Token)

At a high level, Ethena's system revolves around the minting/redemption mechanism of USDe, hedging market exposure, and a staking layer (historically referred to as sUSDe) that distributes rewards from the underlying strategies. ENA, as a governance token, sits at the top of the system and is used for parameter changes and risk oversight. The attractive aspect—and the reason analysts are excited—is the optionality of the fee switch: if/when a portion of the protocol's revenue is allocated to ENA holders, the effective yield of the token could be rapidly repriced. This optionality, combined with USDe's strong product-market fit, makes ENA more than just a pure sentiment trade.

##Why is it called the "largest altcoin bet"? Analysts examine the checklist (ENA arguments)

1. Explosive appeal of stablecoins: Few projects can achieve a ten-digit growth curve in such a short time. More USDe → More fees/visibility → Stronger narrative supporting ENA.

2. Clear price trends and market breadth: With the overall performance of DeFi improving, prices have risen to the mid $0.80s, increasing the likelihood of low points being bought in the case of trend continuation.

3. Fee Switch Options: If the profits belong to ENA stakers/holders, the valuation framework can shift from "governance only" to "cash flow plus governance."

4. Improvement in Emission Status: The modeling unlock path and programmatic requirements (buyback/incentives) indicate a reduction in net selling pressure compared to earlier months—if implemented.

5. Distribution and Liquidity: Deep and multi-place liquidity means that institutions and active traders can make large-scale positions. On Gate, the order book and alerts for ENA/USDT simplify execution during periods of volatility.

August Calendar: Unlocking, Momentum - What Does It Mean (ena Catalyst)

In early August, there was a large-scale unlocking relative to the circulating supply, which raised concerns that this would limit the rebound. Instead, the price remained strong as liquidity absorbed the supply, which is a positive signal for bulls. It is expected that there will be some smaller unlocks before the end of the third quarter. In fact, this means two things for ENA traders this month:

• Mark the unlocking date on the calendar; reduce risks or hedge.
• Observe order book behavior - continuous buying support before or after unlocking is a strong signal of demand depth.

From a technical perspective, a breakout at $0.70 remains a watershed. Acceptance above the mid-high level of $0.80 opens the path to $0.90–$1.00, provided that DeFi risks remain stable.

##Bear Market Scenario: What Could Break the ENA Argument (ENA Risks)

• Mechanisms and Funding Risks: The engine of USDe relies on the funding spread of derivatives and counterparty security. Tight funding or market pressure may slow down returns and affect sentiment towards ena.
• Unlocking hangovers: Although recent supply has been absorbed, future cliffs may still have an impact—especially in cases of reduced liquidity. Plan around dates; do not assume past behavior will repeat.
• Narrative spur: The rapid rise triggers the view of "too fast, too early" and unfavorable comparisons to past failures. Even flawed analogies can instinctively trigger a de-risking before the fundamentals re-emerge.

##How to Position on Gate: A Practical Manual (ENA Trading)

As a Gate content creator, here is a concise way to respect volatility and structure:

• Planned entry levels: Consider bidding in phases when pulling back to $0.72–$0.75, invalid if the daily close falls below $0.70. Momentum entry can gradually increase positions when closing firmly above $0.86 "through strength."
• Use ENA/USDT for precise execution on Gate: Check the order book before sending the amount to avoid slippage; prioritize limit orders close to the reversal zone and gradually exit in the $0.90–$1.00 range.
• Calendar Discipline: Add unlocks and major announcements to alerts; adjust size before events, and reassess after release.
• Base risk on size rather than hope: Set a fixed dollar risk per trade, establish stop-loss at the point where your argument fails, and let position size fluctuate accordingly.

##Position Size and Execution Considerations for ENA

• Think in terms of risk units. Decide how much you are willing to lose for each idea; determine the position size based on the distance from entry to stop loss, rather than by whole coin amounts.
• Respect liquidity. Split orders into several batches to reduce price impact near critical intervals.
• Write down the plan. Before clicking purchase: entry trigger points, invalidation conditions, profit targets, and data that can change your view on ENA.

##Bottom line: Why ENA tops the analyst list in this cycle

ENA is situated at the intersection of a rapidly expanding, crypto-native stablecoin (USDe) and a governance token, with genuine upside potential if the fee mechanism is activated. Coupled with improved pre-issuance prospects and strong multi-venue liquidity, you have a rare altcoin characteristic that offers both growth potential and an execution path. This argument is not foolproof—funding mechanisms, unlocking, and sentiment shocks could still pose risks—but for the risk appetite window of this cycle, it is evident why many analysts view ENA as the largest altcoin bet currently.

Data Snapshot (August 2025): ENA trading around $0.80; USDe supply in the billions; circulating ENA in the billions. Always confirm real-time data before placing orders.