Ethena Surpasses $10 Billion TVL as DeFi Growth Accelerates

Ethena has become the sixth decentralized finance (DeFi) protocol to surpass $10 billion in total value locked (TVL), marking a significant milestone in the rapidly evolving DeFi landscape [1]. As of recent data, Ethena’s TVL has reached $11.893 billion, with an annual percentage yield (APY) of 4.72% for its sUSDe stablecoin [1]. The protocol’s stablecoin, USDe, has emerged as the fastest-growing stablecoin, achieving the $10 billion TVL threshold in just 500 days [2]. This rapid growth underscores the protocol’s ability to attract liquidity even amid regulatory constraints on stablecoin yields in certain jurisdictions.

Ethena’s TVL growth is attributed to its innovative approach to stablecoin issuance and yield management, which has drawn both institutional and retail investors. Over the past month alone, Ethena’s TVL surged by 87%, while its native token, ENA, increased by 150% in the same period [3]. This performance places Ethena among top DeFi protocols such as Aave and EigenLayer, all of which have seen TVL gains of over 30% in the last 30 days [4].

The momentum surrounding Ethena has also contributed to a broader DeFi rally. Blue-chip protocols are experiencing heightened participation and liquidity as users leverage yield-generating strategies across multiple platforms. However, some analysts have raised concerns about the potential for a “triangular relationship of bubble TVL” involving Ethena, Pendle, and Aave—where users exploit cross-platform leverage to amplify borrowing power [5]. Despite such concerns, Ethena’s performance remains supported by strong fundamentals, particularly in risk management and yield optimization.

Meanwhile, the DeFi ecosystem continues to evolve with new innovations like Boros, a product from Pendle that tokenizes funding rates in perpetual swaps [5]. While not directly linked to Ethena, Boros reflects the broader trend of DeFi protocols advancing toward more complex financial infrastructure, a development that aligns with Ethena’s long-term growth trajectory.

Ethena’s $10 billion TVL milestone is more than a numerical achievement—it is a sign of the maturing DeFi ecosystem and the growing appeal of protocols that offer both stability and yield. As Ethena continues to attract capital and expand its product suite, it is well-positioned to maintain its place among the top DeFi protocols. The market will be closely watching how the project leverages its current momentum to further strengthen its position and contribute to the broader adoption of decentralized finance.

Source:

[1] Ethena is the sixth DeFi protocol to surpass $10 billion TVL

https://www.theblockbeats.info/en/flash/307004

[2] Ethena Labs' USDe overtakes rivals as fastest-growing

https://cryptoslate.com/ethena-labs-usde-overtakes-rivals-as-fastest-growing-stablecoin-reaching-10b-in-tvl-in-just-500-days/

[3] Ethena Price Surges 40% Weekly as TVL Breaks $10B

https://cryptorank.io/news/feed/d87d2-ethena-price-surges-40-weekly-as-tvl-breaks-10b

[4] 401(k) Green Light Sparks Market, ETH Retakes

https://www.kucoin.com/blog/en-kucoin-ventures-weekly-report-policy-and-capital-fuel-rally-401-k-green-light-sparks-market-eth-retakes-4000-as-defi-pioneers-new-rate-derivatives

[5] In 20 days, four statements, three bills, and two executive ...

https://www.binance.com/en/square/post/28165419257169