Ethena Labs is on the verge of activating a fee switch for ENA tokens, and honestly, it might change everything we know about stablecoins. With this move, USDe is set to become a major player alongside USDT and USDC. As we unpack all of this, there are some things we should keep an eye on.
USDe’s Rise: A New Challenger in the Stablecoin Arena
USDe has been making waves, with its supply increasing by 42% to reach $12.43 billion. This surge has catapulted USDe into the ranks of the third-largest USD stablecoin, just trailing behind USDT and USDC. The impending profit-sharing fee switch for ENA holders could shake things up even further.
Guy Young, the man behind Ethena Labs, has been vocal about this milestone. He mentioned that USDe's supply is at an all-time high and that the team is focused on the fee switch. The crypto world is waiting with bated breath to see how this will unfold, especially with the integration with centralized exchanges nearing completion.
What the Fee Switch Means for ENA Tokens
Once the fee switch is activated, a part of the fees from the protocol will go to ENA token holders. This could turn ENA into something more than just a governance token. Instead of being a passive asset, it might actually generate some revenue, something traditional stablecoins don’t do.
The hype surrounding the fee switch has already driven up the price of ENA tokens. As we get closer to activation, ENA tokens could become even more desirable, especially to those in DeFi looking for assets that can generate some return.
The Competitive Landscape: USDe vs. USDT and USDC
USDe's rapid growth is shaking things up in the stablecoin market, especially in Asia. The increase in supply enhances liquidity and opens doors in decentralized finance (DeFi) protocols, making it a fierce competitor to USDT and USDC. The total stablecoin supply worldwide jumped from $204 billion to $252 billion in the first half of 2025, with USDT and USDC leading the charge.
The infusion of USDe into DeFi pools could create new opportunities and challenge the existing stablecoins' dominance. The uptick in stablecoin transactions and increase in total value locked in DeFi protocols indicate a rising demand for liquid stablecoins, with USDe sitting in a prime spot.
What This Means for Businesses: Integrating Stablecoins
For businesses that embrace crypto, integrating stablecoins can help manage volatility and speed up payment processes. Here are some suggestions:
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Use Stablecoins for Payments and Payroll: Adopting stablecoins like USDC for contractor pay can provide more consistent value and efficient transactions.
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Hold a Mix of Assets: Pairing stablecoins with traditional assets and other cryptocurrencies can help mitigate risks.
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Buy Stablecoins Regularly: Implementing a DCA strategy may help smooth out the impact of market fluctuations.
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Pick Quality Stablecoins: Choosing stablecoins backed by solid reserves reduces the chance of peg instability.
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Watch for Market Confidence: Favor stablecoins with a history of withstanding market shocks and reliable redemption methods.
Summary
Ethena Labs' fee switch could transform ENA tokens into a yield-generating asset backed by real revenue, potentially increasing their value against conventional stablecoins. USDe's growth and integration into DeFi will challenge established players and alter the competitive landscape. For businesses, adopting stablecoins can streamline operations and reduce volatility, making them a key part of financial strategies. The stablecoin future is looking bright, and Ethena Labs is leading the charge.
