Ethena [ENA] rallied to a new local high of $0.09 as broader market sentiment turned bullish. However, on-chain activity did not fully match the price move, with capital inflows improving while earnings and daily active users continued to lag.
TVL Inflows and Record Deposits
Ethena's price rally received support from its Total Value Locked (TVL). According to DeFiLlama, TVL gained $114 million between the 18th of August and press time, pushing Ethena's total to $4.398 billion. This increase suggested investors were depositing assets for yield opportunities and potential price upside, though the inflow remained modest against the size of the existing TVL.
Meanwhile, Artemis recorded net deposits at a new high of $214 million. Despite this capital surge, the source of the funds remained unclear because user growth failed to match the influx. Daily active users stood at 1,400, down from 2,700 on the 7th of August, suggesting that existing users increased their deposits or a small group provided most of the capital.
Lagging Earnings and Fees
While deposits grew, Ethena's earnings fell to $136,000 during the first 19 days of August. This metric declined from $709,000 in May, extending a broader downtrend that may explain why TVL growth remained measured.
Protocol fees presented another warning sign. Ethena generated $3.67 million in fees over seven days, but only $84.11 during the final 24-hour window. If protocol income continues to lag behind the token's price, traders may question whether ENA's rally has outrun its underlying economics.
