Ethena’s TVL hits ATH, but ENA price slides 13% – Here’s why

Key Takeaways

Why is Ethena’s TVL rise notable?

Ethena locked $13.88 billion in TVL with APY at 7.2%, showing strong investor confidence despite bearish price action.

What signals could drive ENA’s price recovery?

Funding Rate hit –0.0046% while exchange Netflows rose; easing off-chain pressure may open room for bullish inflows ahead.

Ethena [ENA] posted stronger on-chain activity but failed to reflect those gains in price action. At press time, ENA traded at $0.703, down 3.28% on the day and almost 13% weekly.

Despite this weakness, Total Value Locked (TVL) and active participation signaled strength under the hood.

AMBCrypto now breaks down whether this disconnect between rising adoption and falling price could set up ENA’s next decisive move.

Investors locked in more capital

DefiLlama data showed Ethena’s Total Value Locked (TVL) climbed to $13.88 billion, setting a fresh all-time high.

A one-day inflow of $151 million suggested long-term optimism, as investors continue to lock assets with the expectation of sustained yield rewards and possible upside as ENA strengthens.

Source: DeFillama

A rise in TVL often reflects bullish investor confidence, while a decline typically indicates bearish sentiment building up in the market.

In ENA’s case, the recent increase has tilted sentiment toward growth, despite the drop in token value.

On-chain activity aligns with bullish sentiment

Activity on-chain has also mirrored the positive outlook suggested by the rise in TVL.

For instance, Ethena’s 30-day APY, which tracks the average yield generated by investors, has reached its highest point since March.

At the time of writing, this figure crossed 0.072, showing that liquidity providers are earning notable profits from the protocol. This trend further reflects the broader strength seen in TVL growth.

Source: Artemis

Transaction volume on-chain has also risen sharply as well.

Data from Artemis, which tracks on-chain usage, shows the number of Active Participants surged to a new peak of 32,000.

High transaction levels such as these indicate that investors are actively using the protocol, underscoring demand and market participation. Yet, despite this strength, the token’s price remained under downward pressure.

AMBCrypto’s review shows that selling across exchanges is playing a decisive role in limiting price gains.

Off-chain investors bet against ENA

Activity in the Spot market indicated persistent selling pressure.

According to CoinGlass data, $5.4 million flowed into centralized exchanges at press time, effectively boosting ENA’s Exchange Reserves. This metric is often linked with a stronger tendency to sell when reserve balances climb.

Source: CoinGlass

Meanwhile, Perpetual market sentiment also skewed bearish.

Source: CoinGlass

The Open Interest Weighted Funding Rate, which tracks derivatives positioning, slipped into negative territory. At the time of observation, it printed -0.0046%, showing shorts outweighed longs.

ENA remained under pressure despite strong on-chain sentiment. Unless exchange flows ease, the downside could extend. Still, further inflows might support recovery.