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

ENA extended gains alongside broader market strength, though underlying signals remained mixed.

Over the past 24 hours, Ethena posted double-digit gains as capital rotated into high-beta altcoins. However, protocol and derivatives data suggested the rally was not one-dimensional.

Capital inflows strengthen ENA’s momentum

One of the clearest indicators that the market has entered a stronger bullish phase is the renewed participation across on-chain metrics and perpetual futures markets.

On-chain performance, often evaluated through protocol revenue and utility, has improved notably. At the time of writing, Ethena’s [ENA] revenue performance in the first 47 days of Q1 2026 had already outpaced its total revenue recorded in Q4 2025.

Data from DeFiLlama showed that protocol revenue rose from $463,000 in Q4 2025 to approximately $566,000 so far in Q1.

This increase signals a rebound in user activity and capital deployment compared to the previous period, when market-wide volatility and declining liquidity weighed on performance.

Derivatives activity also supports the bullish case.

CoinGlass data showed Open Interest rising alongside positive Funding Rates. The Weighted Average Funding Rate remained positive at 0.0078%.

That alignment indicated long traders paid a premium to maintain exposure. Rising Open Interest suggested fresh capital entered positions rather than simple short covering.

This combination typically reflects conviction behind upward price momentum.

Spot investors reduce exposure

Despite the improving derivatives and on-chain signals, early signs of weakness are emerging from the spot market.

ENA Spot Inflow/Outflow data showed net selling pressure on the 25th of February. Exchange Netflows recorded roughly $1.80 million in net outflows into exchanges, signaling distribution.

Such movement often reflects profit-taking or defensive positioning during rallies.

That shift set up a divergence between derivatives optimism and spot caution.

Source: CoinGlass

The upcoming token unlock scheduled for the 6th of March may also be influencing sentiment. Some investors appear to be locking in gains ahead of additional supply entering circulation.

Although the unlock is relatively modest—around $4.16 million worth of ENA—the market impact depends on behavior. If allocated wallets decide to sell and the overall market sentiment weakens at that time, the price could react quickly to the added supply.

That said, the unlocked tokens are reportedly designated for ecosystem development.

If deployed for operational expenses or service payments, a portion of the supply could still find its way into the open market, potentially increasing short-term sell pressure.

ENA remains at a balanced level

For now, ENA’s structure remains relatively balanced. Liquidity clusters are positioned both above and below the current price, suggesting no immediate directional dominance.

With liquidation levels concentrated in close proximity on either side, the next decisive move will likely depend on prevailing momentum and broader market conditions.

Given the current bullish momentum and strengthening on-chain and derivatives metrics, ENA appears positioned for a potential continuation to the upside.

However, sustained gains will require spot demand to align with the optimism in the perpetual markets.

Source: CoinGlass

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.