The Ethena DeFi platform is seeing a revival in ENA on-chain transactions following a period of sluggish activity. Could this be the beginning of a turnaround for the network, particularly its Total Value Locked (TVL)?
ENA entered the trading scene in April this year with strong daily on-chain activity, reaching over $1 billion at its peak. However, volumes gradually declined, dipping below $100 million between July and September 2024.
Recent data shows a notable increase in ENA’s daily on-chain volume, averaging over $500 million in just the past two days. Although not reaching its initial highs, this surge reflects growing trading activity and interest in the coin.
The renewed demand for ENA suggests a potential shift towards positive growth for Ethena after a period of stagnation, particularly evident in its TVL performance.
Despite hitting $3.612 billion in July, Ethena’s TVL has since dropped to $2.43 billion as of October 16. The recent spike in ENA volumes could boost Ethena’s TVL if sustained demand continues, especially with increased utility.
ENA Striving to Break Out of the Bottom Range
ENA has regained its bullish momentum in the past week, aiming to distance itself from the lows seen in September, mirroring the overall market trend.
The cryptocurrency enjoyed a 78% surge over the past 7 days, reaching $0.46. However, ENA’s rally seems capped by an ascending resistance line, as evident in Tuesday’s retracement of over 5% to $0.40.
While showing signs of recovery, ENA remains far from its peak of $1.52. The key question now is whether the token can sustain this upward trend, with a bearish divergence suggesting potential short-term challenges for the bulls.
ENA’s price performance indicates a steady recovery over the last couple of months, reinforcing its appeal in the market and potentially paving the way for long-term benefits.