Ethena's ENA Surges 134% in July as TVL Hits $8 Billion

Ethena’s native token, ENA, has surged more than 134% in July 2025, reaching above $0.60 for the first time in months. The token’s rally has been accompanied by a 50% increase in the protocol’s total value locked (TVL), which now exceeds $8 billion, marking Ethena as one of the fastest-growing DeFi platforms [1]. The TVL growth reflects a sharp rise in user participation, with more wallets locking value into the system. This surge has fueled optimism among investors, who are now debating whether the momentum is sustainable or merely a short-term pump.

The growth is largely attributed to the adoption of Ethena’s synthetic dollar, USDe. Unlike traditional stablecoins, USDe does not require overcollateralization or fiat reserves, offering a more flexible and capital-efficient alternative in the DeFi space. The token’s rising value is also tied to its role as the governance and staking token of the Ethena protocol. As the platform expands, demand for ENA has increased, pushing prices higher [3].

Ethena’s performance has drawn attention from both retail and institutional investors. A recent capital raise by StablecoinX Inc. to purchase ENA tokens signals institutional confidence in the project’s future. Additionally, strategic partnerships with platforms like TON and Anchorage have enhanced USDe’s utility, expanding its reach to Telegram users and supporting its integration in the U.S. market [1].

Analysts are divided on the sustainability of ENA’s current price level. $0.60 represents a key psychological barrier and potential resistance point. If ENA maintains strong volume and continues upward, it may head toward $0.75. However, if momentum wanes, the token could pull back toward $0.52 or lower. A significant factor in determining ENA’s trajectory will be the protocol’s ability to sustain TVL growth and attract new users [1].

Despite the bullish momentum, broader market conditions remain challenging. If the overall crypto market experiences a downturn, Ethena could face downward pressure. However, the project’s expanding TVL and ecosystem stability suggest a stronger foundation compared to other altcoins. ENA’s 24-hour trading volume has increased by 270% to $1.27 billion, indicating growing user activity and engagement [1].

Looking ahead, some forecasts suggest ENA could reach $1 to $2 by December 2025, provided the supply of USDe continues to expand beyond its current peak of $8.1 billion. These projections are speculative and should be treated as analyst forecasts rather than confirmed outcomes [4]. The next few weeks will be critical in determining whether Ethena’s price surge is a lasting trend or a temporary spike.

Ethena’s recent performance underscores the potential for DeFi projects with unique value propositions and institutional backing. While the sustainability of the current rally remains uncertain, the protocol’s growing TVL and user base suggest it will remain a key player in the crypto space.

Source:

[1] https://coinjournal.net/news/ethena-ena-rallies-16-as-8b-tvl-sparks-bullish-momentum/

[2] https://investx.fr/en/crypto-news/ethena-ena-bounces-back-strongly-poised-for-explosive-growth-ahead/

[3] https://coinfomania.com/ethena-price-surge-ena-hits-0-60/

[4] https://coincentral.com/xrp-price-aiming-for-5-but-these-two-altcoins-could-see-50x-before-year-end/