Ethena Revenue Drops 32% as ENA Tests Key $0.089 Support

• Revenue dropped 32%, reflecting weaker network activity and reduced participation.
• TVL and daily users declined, signaling capital outflows and fading engagement.
• Spot buying persists, but weak fundamentals limit strong upside potential.

Ethena has entered a critical phase as price aligns with weakening fundamentals. ENA dropped sharply and now trades near $0.089. Recent data highlights pressure across revenue, liquidity, and user activity. Investors now question whether current levels can hold. Some signals suggest demand still exists beneath the surface. Others point to deeper structural issues. This mix creates uncertainty as traders watch closely for the next move.

Weak Metrics Signal Declining Network Strength

ENA has been struggling across several key metrics since early 2026. Revenue efficiency has taken a clear hit compared to late 2025. Gross protocol revenue fell to $65.06 million from $96.15 million. That drop reflects a 32% decline within one quarter. The fall looks even steeper when compared to Q3 results. Lower revenue suggests reduced activity across the network. Minting demand has slowed, while staking rewards have declined. These shifts often reflect weaker participation from users.

The broader market has stayed relatively stable, which raises concerns. Weak performance here points more toward internal issues than external pressure. Liquidity trends support this outlook. Total Value Locked has continued to slide over recent weeks. Since early March, TVL has dropped by around $130 million. Current levels sit near $6.66 billion. That decline shows capital leaving the ecosystem steadily. Within the last day, users unstaked roughly $16 million.

Such outflows signal reduced confidence among participants. User activity also paints a concerning picture. Daily Active Users have fallen to near 1,200. That marks the lowest level since December. Fewer users interacting with the protocol limits growth potential. Declining engagement often leads to slower recovery phases.

Can Demand Offset Fundamental Weakness?

Despite these challenges, some positive signs have appeared. Ethena reported a slight increase in gross profit this quarter. Q1 generated about $614,190 compared to $463,200 in Q4. This rise offers a small boost but remains far below past performance. Q3 figures reached over $10 million, highlighting a sharp gap. This gap suggests profit growth alone cannot sustain long-term interest.

Investors usually seek stronger returns across competitive DeFi platforms. Capital tends to move quickly toward better yield opportunities. Without stronger incentives, user retention becomes difficult. However, spot market data offers a different perspective. Recent exchange flows show increasing buying pressure. Over the past day, net inflows reached around $303,000. Over three days, total accumulation climbed above $3 million.

These numbers show that buyers still absorb selling pressure. Sustained accumulation could support short-term price stability. Yet long-term direction depends on improving fundamentals. Revenue recovery and rising user activity remain critical factors. Without those elements, upside potential may stay limited.