Mega Matrix Bets on Ethena Stablecoin with 6x Upside Potential Over Circle

Mega Matrix Elevates Ethena Stablecoin as Core Digital Asset Play

Public holding company Mega Matrix (MPU) is intensifying its focus on the Ethena stablecoin ecosystem, positioning it as the centerpiece of its digital asset strategy. The firm is betting that Ethena’s synthetic dollar project can capture significant market share from established players such as Circle.

This strategic emphasis follows the recent passage of the US GENIUS Act, a comprehensive federal stablecoin regulation that introduces oversight on issuers, capital and liquidity requirements, and a framework enabling banks and fintechs to issue dollar-pegged tokens under regulatory supervision.

Circle Dominates Public Stablecoin Market, But Ethena Shows Promise

Currently, Circle remains the sole publicly traded company capitalizing on stablecoin growth, having gone public in June 2023 with shares appreciating 87% since listing. In fiscal 2024, Circle reported $1.68 billion in revenue and reserve income and $155.7 million in net income, largely driven by interest income from reserves backing its USDC stablecoin.

Colin Butler, Mega Matrix’s executive vice president and global head of markets, told Cointelegraph that Mega Matrix believes Ethena can achieve comparable growth. “We think Ethena can do $150 million in the next 6–12 months. That would imply a 6x upside to Ethena,” Butler said.

USDe’s Yield and Collateral Advantages

Ethena’s growth is fueled by USDe, a synthetic stablecoin that generates yield via staking and hedging strategies. Unlike USDC and USDt, which do not provide returns to holders, USDe offers a yield, making it more attractive as collateral in decentralized finance applications. Butler argues this positions Ethena to capture greater market share in a rapidly expanding stablecoin market.

Mega Matrix Offers Public Exposure to Ethena via ENA Token

To provide investor access, Mega Matrix has structured its stock as the first publicly traded digital asset treasury dedicated to the Ethena ecosystem, concentrating its reserves in Ethena’s governance token, ENA. This approach offers retail investors direct exposure to the stablecoin sector beyond Circle or indirect avenues like Coinbase.

Before pivoting to digital assets, Mega Matrix operated primarily in entertainment and game publishing. The company began exploring blockchain technology in 2021 and formally repositioned as a digital asset treasury in 2025. It supports this strategy with a $2 billion shelf registration, allowing flexible capital raising to build its ENA holdings over time.

Ethena’s Fee-Switch Mechanism Could Boost Tokenholder Returns

In its shelf registration filing, Mega Matrix highlighted Ethena’s “fee-switch” mechanism as a potential catalyst for value creation. Once activated, this feature would redirect a portion of protocol revenues to ENA stakers, enabling tokenholders to share directly in the protocol’s earnings.

The mechanism was proposed in November 2024 by Wintermute Governance and subsequently approved, with Ethena Labs setting “success metrics” based on USDe circulating supply, cumulative revenues, and adoption on centralized exchanges. However, a formal activation date has not been announced, according to an Ethena Foundation spokesperson.

Market observers note that Ethena’s growth has already surpassed some of the thresholds initially outlined. USDe’s market capitalization recently exceeded $13 billion, positioning it as the world’s third-largest stablecoin, and cumulative protocol revenues are nearing qualifying levels. Nonetheless, the timing of the fee-switch activation remains uncertain.