Ethena’s ENA token posted double-digit gains amid broader market strength, though underlying signals from spot trading and derivatives presented a mixed picture. On-chain protocol revenue showed significant growth in Q1 2026, while exchange netflows indicated some profit-taking by spot investors.
Ethena’s ENA token extended gains alongside broader market strength, though underlying signals remained mixed. Capital rotated into high-beta altcoins, driving the asset’s price upward.
One indicator of a stronger bullish phase is renewed participation across on-chain metrics and perpetual futures markets. Ethena’s on-chain performance, evaluated through protocol revenue and utility, improved notably.
In the first 47 days of Q1 2026, the protocol’s revenue had already outpaced its total revenue recorded in Q4 2025. Data from DeFiLlama showed revenue rose from $463,000 in Q4 to approximately $566,000 so far in Q1.
Derivatives activity also supports the bullish case according to CoinGlass data. Open Interest rose alongside positive Funding Rates, with the Weighted Average Funding Rate at 0.0078%, indicating long traders paid a premium to maintain exposure.
Despite this, early signs of weakness emerged from the spot market. Exchange Netflows recorded roughly $1.80 million in net outflows into exchanges on February 25th, signaling distribution and potential profit-taking.
This movement set up a divergence between derivatives optimism and spot caution. The upcoming token unlock scheduled for March 6th, worth around $4.16 million, may also be influencing sentiment as some investors lock in gains ahead of additional supply.
For now, ENA’s structure remains relatively balanced with liquidity clusters positioned both above and below the current price. Given the current bullish momentum, ENA appears positioned for a potential continuation to the upside, though sustained gains will require spot demand to align with perpetual market optimism.
