Ethena struggles as revenue falls 32% – Can demand save ENA at $0.089?
The post Ethena struggles as revenue falls 32% – Can demand save ENA at $0.089? appeared on BitcoinEthereumNews.com.
Ethena’s [ENA] price now appears to be aligning with its weakening financial performance. Over the past 24 hours, the asset has recorded a double-digit decline, dropping to $0.089 at press time. While the numbers reflect mounting pressure, a broader evaluation of market conditions is necessary to determine whether this decline marks the start of a deeper correction or a temporary adjustment. Ethena’s momentum weakens across key metrics On-chain data shows that ENA has underperformed across multiple fronts since the start of Q1 2026, particularly when compared to its performance in the previous two quarters. A key area of concern is revenue efficiency. Gross Protocol Revenue fell to $65.06 million, down from $96.15 million in Q4 2025, representing a 32% decline. The drop becomes even more pronounced when compared to Q3 2025. This contraction points to weaker minting activity and reduced staking rewards, both of which suggest declining on-chain participation. Source: DeFiLlama In a market that has remained relatively stable compared to the October–December 2025 cycle, this underperformance raises concerns about weakening user demand rather than external pressure. Liquidity conditions reinforce this trend. Total Value Locked (TVL), a core indicator of protocol health and user commitment, has continued to decline steadily. Since the start of March 2026, TVL has fallen by approximately $130 million, bringing it to around $6.66 billion at the time of writing. Within the last 24 hours alone, roughly $16 million has been unstaked, signaling sustained capital exit from the protocol. Can profit alone sustain user interest? Despite the broader slowdown, Ethena has recorded a slight improvement in gross profitability. In Q1 2026, the protocol has generated $614,190 in gross profit, compared to $463,200 in Q4 2025. While this reflects a marginal increase, it does little to offset the sharp decline from earlier performance levels. For context, Q3…
Filed under: News - @ March 28, 2026 6:15 pm