Ethana's revenue decreased by 32% – Can demand save ENA at a price of $0.089?

Ethena (ENA) is showing a clear correlation with weakening momentum in financial performance. Over the past 24 hours, this asset has recorded a double-digit decline, falling back to 0.089 USD at the time of writing.

Despite the fact that the indicators reflect increasing pressure, it’s important to put this development in the context of the broader market to determine whether this is the start of a deeper adjustment or just a short-term correction.

Weakening Growth Momentum Across Key Metrics

On-chain data shows that ENA has underperformed across multiple dimensions since the beginning of Q1/2026, especially when compared with the two preceding quarters.

One notable aspect is revenue generation performance. Gross Protocol Revenue has dropped to 65.06 million USD, from 96.15 million USD in Q4/2025, equivalent to a 32% decline. This weakening is even more pronounced when compared with Q3/2025.

This development reflects a weakening in coin-generation activity alongside falling staking yields, indicating that the level of on-chain participation is declining.

Source: DeFiLlamaIn a market that has been relatively stable compared with the period from 10/2025 to 12/2025, this underperformance raises concerns that user demand is weakening, rather than being driven by external factors.

Liquidity is also sending negative signals. Total Value Locked (TVL)—a key metric reflecting protocol health and the extent of user commitment—has maintained a continuous downward trend.

Since the beginning of March 2026, TVL has fallen by about 130 million USD, down to 6.66 billion USD at the time of writing. In the most recent 24 hours alone, around 16 million USD has been unstaked, suggesting that capital is still leaving the protocol persistently.

Can Profit Improvement Be Enough to Sustain the Appeal?

Despite the overall picture being less than positive, Ethena is still seeing a slight improvement in gross profit.

In Q1/2026, the protocol generated 614.190 USD in gross profit, up from 463.200 USD in Q4/2025. However, this increase is marginal and not enough to offset the sharp decline compared with earlier periods.

For comparison, Q3/2025 recorded 10.18 million USD in gross profit—about 16.5 times higher than the current figure. This gap suggests a structural decline in profit-generating capacity, even if short-term performance shows signs of improvement.

The implication is quite clear: modest profit growth is unlikely to sustain user appeal, particularly in a highly competitive DeFi environment where capital tends to move quickly toward opportunities with more attractive yields.

User activity data also reinforces this view. According to Artemis, the number of daily active users has fallen to about 1,200—the lowest level since December.

Spot Demand Sends a Contradictory Signal

While underlying fundamentals and liquidity are weakening, activity in the spot market is offering a more positive signal. Exchange netflow data shows that buy pressure has increased recently. Over the past 24 hours, net inflows into spot positions were about 303,000 USD.

More importantly, this is not an isolated phenomenon. In the last three days, the total accumulated buy value has reached about 3.41 million USD, indicating that the accumulation trend is occurring steadily.

Source: CoinGlassThis development suggests that investors are still absorbing selling pressure, even as capital withdraws from the protocol layer.

If the accumulation trend continues, it could help limit further deep downside and support price stabilization. However, if the core underlying factors—especially user activity and revenue generation capability—have not recovered, ENA’s growth potential is likely to remain constrained within a narrow range.