Ethena TVL Swings from $13.9B Peak to $8.6B After $5.7B Outflows
Ethena’s TVL surged to an all-time high of $13.88 billion with a one-day inflow of $151 million and a 7.2% APY, boosting on-chain activity to 32,000 participants and higher transaction volumes. However, heavy selling—$5.4 million into centralized exchanges and a negative funding rate—drove the ENA price down 3.3% daily.
Between October 11 and November 12, Ethena recorded $5.72 billion in net outflows, cutting TVL to $8.58 billion and slashing ENA’s price by 10%. On-chain metrics weakened: transactions fell to 24,500 and daily protocol revenue plunged from $109,462 in Q3 to $1,817. A $4.56 million token unlock on November 8 and a daily S3 airdrop of $149,858 added selling pressure. Net USD inflows turned negative $46 million with $569,000 in spot outflows from exchanges. CEO Maria Carola warns that inflation and Fed policy uncertainty may keep high-beta assets under pressure. Traders should watch exchange flows, funding rates, token unlocks, and airdrop distributions for signs of recovery or further decline.
Bearish
The news of $5.72 billion net outflows and a 38% drop in TVL from its $13.88 billion peak signals strong selling pressure on Ethena. Combined with the collapse in on-chain metrics—transactions and protocol revenue—and ongoing token unlocks and airdrops, this points to continued bearish momentum in the short term. Over the long term, sustained outflows and market uncertainty, driven by inflation and Fed policy, may prolong the downtrend unless significant positive catalysts emerge.