Ethena's TVL Dips Over Half from Late 2025 Peak

RunWhenCut · 2026-01-21T19:17:59+00:00

Ethena's total value locked (TVL) has drastically decreased from $14.98 billion in October 2023 to $6.63 billion by mid-December 2025, marking a 55% decline. This sharp drop highlights significant market shifts and volatility within the DeFi sector.

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2026-01-21 19:17:59

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Ethena’s total value locked has experienced a significant contraction recently. Data analyzed by unfolded. reveals that the decentralized finance protocol’s TVL has retreated substantially from its October 3 high, when it reached $14.98 billion. As of mid-December 2025, the TVL declined to $6.63 billion, representing a sharp 55% pullback from that peak.

Magnitude of the TVL Decline

The scale of the retreat underscores growing market headwinds affecting the protocol. Within roughly two months spanning Q4 2025, Ethena’s TVL shed more than half its value. This $8.35 billion contraction reflects shifting capital allocation patterns and investor sentiment within the DeFi sector. The fact that TVL fell below the $7 billion threshold marks a notable shift for a protocol that had commanded nearly $15 billion in total locked value just weeks prior.

Market Implications

Such substantial TVL fluctuations are not uncommon in DeFi, where capital flows remain highly responsive to market conditions and protocol developments. The decline from Ethena’s all-time high underscores the volatility characterizing the space. Whether the protocol can stabilize its TVL or continue the downtrend remains a key metric for participants monitoring Ethena’s ecosystem health and competitive standing within the broader DeFi landscape.

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