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Key Insights:
- Ethena crypto surged 6.2% to $0.4105 after breaking out from a bullish pennant; upside target seen at $0.5988.
- Ethena’s TVL hit $5.26B, nearing ATH, while monthly active addresses rose to 43,100, up from 25K in late 2024.
- A $1.3B expiry on May 29 could trigger short-term volatility, but funding remains stable with limited short pressure.
After breaking out of a bullish pennant, Ethena’s native token, ENA is gaining attention. Recent price stagnation, however, does not reflect the increasing interest in the protocol, as evidenced by rising total value locked (TVL) and consistent user activity on-chain.
It comes ahead of a $1.3 billion derivatives expiry on May 29 that could add short-term volatility. While the breakout’s momentum is being assessed, strong liquidity, growing developer activity, and stable funding rates indicate that Ethena is structurally sound.
Ethena Crypto Price Action Shows Technical Breakout
As of writing, ENA/USDT has surged over 6.2% to $0.4105 after a breakout from a bullish pennant on the 8-hour chart.
WorldOfChartsFX’s breakout also shows a possible upside target at $0.5988 or 46% above the breakout level.
Since early May, ENA had been trading between $0.34 and $0.42 in a triangle, making lower highs and higher lows. After a steady rise in volume and several successful support retests, the breakout happened.
Meanwhile, Ethena’s total value locked (TVL) is now at $5.26 billion, just below its all-time high. This is a stark contrast to its current token price, which is still a long way below the $ 1.52 it hit in April last year.
Token liquidity is $12.8 million, and 24-hour token volume is $286 million, bringing the current fully diluted valuation (FDV) to around $5.91 billion. Protocol fees are annualized at $173.92 million, and revenue is at $3.43 million. These numbers indicate that the platform is still being heavily used by users.
However, the disconnect between rising TVL and falling price has caught people’s attention, especially as the protocol continues to see a stable inflow of capital. This is unusual, market, as the platform sees more usage through its eUSD and sUSD stable assets.
Derivatives Expiry Adds Volatility Watch
On May 29, Ethena crypto will see $1.3 billion in Principal Tokens (PTs) expire, based on data from Pendle. While many Pendle maturities pass without disruptions, large redemptions can cause slippage or short-term dislocations.
For Ethena, eUSD markets hold $143.7 million in liquidity and sUSD holds $82.9 million. Annual percentage yields (APYs) are fixed at 11.4% and 11.28%, respectively. Despite attractive yields, early withdrawals before maturity risk destabilizing pools.
Traders and liquidity providers are monitoring for volatility stemming from exit behavior. Sentora warned that early redemptions in thinner liquidity pools may cause slippage, though YT pricing has remained mostly stable.
On-Chain Growth and Neutral Funding Signal Bullish Setup
Ethena crypto reported 43,100 monthly active addresses, up from under 25,000 in late 2024. While small compared to 25.4 million users across stablecoin protocols, it represented a growing market share at 0.2%.
Over the past two weeks, the ENA long/short ratio fluctuated but remained slightly bearish. Funding rates hovered near neutral, reflecting balanced demand from both bulls and bears.
A heatmap comparison of funding rates across altcoins showed low negative pressure on ENA. The data suggested that speculative short interest was limited.
Combined with the breakout structure and strong TVL growth, these trends pointed to potential further upside. Though short interest persisted, the technical setup and on-chain trends positioned ENA for a possible continuation higher.
Disclaimer
This article is for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
