Ethena [ENA] climbs as Q1 revenue beats Q4 2025 – Yet ONE risk remains

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Ah, the sweet allure of capital inflows, as predictable as the tide, and just as fickle. Ethena (ENA) has, unsurprisingly, found itself basking in the warmth of broader market strength, though the true story, as always, lies in the finer details – mixed, of course, to keep us on our toes.

In a stunning display of numerical gymnastics, ENA posted double-digit gains over the past 24 hours, as capital found its way into high-beta altcoins. A delightful spectacle, if you’re one for volatility. But alas, behind the curtain, the protocol and derivatives data suggest this rally may not be as one-dimensional as the traders would like to believe. Isn’t it always more complicated than it seems?

Capital inflows strengthen ENA’s momentum

Ah, the market is in full bullish swing, and no one can quite resist the magnetic pull of renewed participation. On-chain metrics and perpetual futures markets are once again alive with activity, reminding us all that the cycle of greed and optimism marches on.

On-chain performance, that ever-faithful barometer, has improved notably. At the time of writing, Ethena’s [ENA] revenue for the first 47 days of Q1 2026 had already exceeded its entire revenue from Q4 2025. A fine example of early success, but we do wonder: can it last?

Data from DeFiLlama reveals that protocol revenue rose from $463,000 in Q4 2025 to a somewhat more impressive $566,000 in Q1. Oh, the joys of a little extra cash. But does it really mean anything, or are we simply fooling ourselves into believing this is a meaningful trend?

This increase signals a rebound in user activity, or perhaps just a brief respite from the previous period’s market-wide chaos. Who can say for certain? We move forward, cautiously optimistic, as always.

Meanwhile, derivatives activity has also thrown its hat into the ring, showing signs of life. CoinGlass data points to rising Open Interest, along with positive Funding Rates. The Weighted Average Funding Rate, holding steady at 0.0078%, suggests long traders are paying a premium for the privilege of staying in this game. An intriguing dance of numbers, no doubt, but will it lead anywhere substantial?

All signs point to a clear message: there is conviction behind the upward price momentum. But one must ask – for how long?

Spot investors reduce exposure

Ah, and then there is the matter of the spot market, where caution reigns supreme. While derivatives and on-chain signals may be flashing bullish, the spot market is showing early signs of weakness. A touch of prudence, perhaps, or just a hint of doubt?

ENA Spot Inflow/Outflow data from the 25th of February paints a picture of net selling pressure, with exchange Netflows showing approximately $1.80 million in net outflows. Could it be a mere blip, or is this the beginning of a larger trend? Time will tell.

Such movements are often the result of profit-taking or defensive positioning, common during rallies. In any case, a divergence has formed between the buoyant optimism of the derivatives market and the cautious approach of the spot investors. A classic tale of two markets, both convinced of their own rightness.

But let’s not forget the upcoming token unlock on the 6th of March, which is sure to stir the pot. Some investors are already locking in their gains in anticipation of the additional supply flooding the market. Only $4.16 million worth of ENA is involved, but as we all know, even the smallest trickle can lead to a flood.

If those unlocked tokens find their way into the open market – and if sentiment weakens – the market could see a swift reaction. But then again, these tokens are meant for ecosystem development, so perhaps we shall see some grand scheme unfold. We can only hope it’s not just a veiled excuse for a market dump.

ENA remains at a balanced level

For now, ENA maintains a balanced structure, poised between two equally tempting forces: above and below. Liquidity clusters sit comfortably on either side of the current price, suggesting no immediate directional dominance. The market, like a finely balanced tightrope walker, awaits the next gust of wind to dictate its fate.

With liquidation levels concentrated on either side, the next decisive move will likely hinge on broader market conditions and prevailing momentum. For now, ENA stands at a crossroads, with the potential for upside – if spot demand can align with the optimism of the perpetual markets.

Final Summary

  • Ethena [ENA] posted double-digit gains as Q1 revenue hit $566.73K, surpassing Q4’s $463.26K.
  • Total protocol revenue reached $10.18 million, signaling renewed on-chain activity.

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2026-02-26 15:03