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- Ethena’s TVL hit a record $13.88B despite price falling.
- On-chain activity and user participation are at all-time highs.
- Exchange inflows and short bets are suppressing ENA’s price.
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Ethena (ENA) is showing a puzzling disconnect between on-chain strength and market sentiment. While activity on its network has surged, the token’s price continues to slide. At the time of writing, ENA traded at $0.703 — down 3.28% on the day and nearly 13% over the past week.
TVL Hits Record High as Investors Stay Committed
Despite its price weakness, Ethena’s fundamentals appear robust. According to DeFiLlama, Ethena’s Total Value Locked (TVL) has reached an all-time high of $13.88 billion, with a single-day inflow of $151 million. This surge suggests long-term confidence as more capital flows into the protocol.
Typically, a rising TVL indicates bullish sentiment as investors lock in assets for yield rewards and future gains. Ethena’s growth here points to sustained trust in its ecosystem, even as its token struggles on the open market.
On-Chain Metrics Signal Growing Engagement
Activity metrics also confirm this optimism. Data from Artemis shows Ethena’s 30-day annual percentage yield (APY) recently climbed past 0.072 — its highest level since March — reflecting strong profits for liquidity providers.
Active participants on the network have surged to a record 32,000, while transaction volumes have also jumped. Such growth signals healthy usage and broadening adoption. Still, this enthusiasm hasn’t translated into price gains, hinting at external forces suppressing momentum.
Selling Pressure from Exchanges Weighs on ENA
Off-chain data reveals where the drag may be coming from. CoinGlass reported $5.4 million flowing into centralized exchanges, pushing ENA’s exchange reserves higher — a sign of increased selling intent.
Also Read: Ethena Exits USDH Race as Native Markets Leads Hyperliquid’s $5.9B Stablecoin Vote
In derivatives markets, the Open Interest Weighted Funding Rate turned negative at -0.0046%, showing short positions outnumber longs. This bearish sentiment has offset Ethena’s strong on-chain activity, capping price growth.
Ethena’s fundamentals suggest resilience, but exchange-driven selling pressure is keeping its price under strain. If outflows from exchanges ease, the token could find room to recover. Until then, ENA remains caught between growing adoption and short-term market skepticism.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
