Ethena's Strength Tested by Negative Funding Rate
Ethena's (ENA) recent earnings and total value locked (TVL) surge suggest a strong protocol, but a negative funding rate threatens to derail its projected 30% rebound.
The synthetic dollar protocol generated $605,000 in protocol earnings during the first 17 days of May, marking an eight-month high. This is according to DefiLlama figures that track revenue minus user incentives.
ENA's TVL has climbed by about $998 million since April 23, indicating fresh capital entering the protocol as investors deepen their exposure to ENA and the broader Ethena ecosystem.
Data shows spot exchanges have recorded cumulative netflow outflows of about $140 million over the past ten days, a pattern often tied to bullish accumulation. However, perp netflow outflows reached $819 million over the same window, with short positions stacking up due to a negative funding rate.