All about Ethena’s ‘rally’ and what’s next for ENA traders

Ethena [ENA] recorded a major surge over the past 24 hours, with the crypto climbing by 13% on the charts. 

However, while this may seem bullish on the surface, most of the growth had little to do with the protocol’s performance. In fact, a call for a massive rally may be too early as it stands.

Ethena capital remains slim

The strength of ENA’s press time price had little to do with the protocol as limited capital flowed into Ethena and the protocol generated minimal fees. In fact, DeFiLlama data revealed that the Total Value Locked (TVL) increased by roughly $160 million, hitting $4.719 billion at press time.

TVL measures the health of a protocol, and when there is a surge in its value, it alludes to greater interest in the asset and its long-term value.

Likewise, the scale is often reflective of the conviction depositors hold.

For Ethena, that conviction has been slim so far. Interestingly, the protocol’s revenue has been minimal too, with DeFiLlama showing that Ethena generated just $56.91 in the last 24 hours.

Over the last 30 days, revenue has remained minimal as well, with just $21,317 generated. 

What about the spot market bid?

There may be growing conviction among spot traders in the market as they flip the script. According to CoinGlass, Spot Market Netflow recorded around $100,000 in Net Inflows.