📅 July 20, 2025 | Singapore
The Ethenas (ENA) protocol has just struck a blow to the DeFi market: as Ethereum struggles to sustain its rally, ENA soared 20% in just 24 hours, fueled by an inflow of over $750 million. As CoinDesk revealed, this flood of fresh capital makes Ethenas one of the protocols with the most momentum in the ecosystem, just as funding rates and interest on lending platforms are once again at all-time highs.
ENA's surge, which had already been trending upward since the second quarter of the year, confirms the narrative: institutional liquidity and DeFi funds are once again seeking aggressive yields, and Ethenas is emerging as the new jewel in the crown.
What is Ethenas (ENA) and why is it attracting so much money?
Ethenas began as a lending and yield farming protocol on Ethereum, but in 2025 it evolved into a multi-chain hub, with automated staking strategies, liquidity pools with dynamic APYs, and a governance system that rewards ENA holders with on-chain rewards.
According to CoinDesk, part of the capital flowing into Ethenas comes from liquidity rotation from other DeFi protocols that reduced yields, combined with traders seeking refuge from the recent volatility of BTC and the potential sell-off of the stockpile seized in the UK.
DeFi Fees Red Hot
Context helps: funding rates on DeFi platforms are at their highest level in six months, driven by renewed interest in arbitrage strategies, cross-staking, and yield derivatives. This makes projects like Ethenas, which optimize multi-chain pools and add flexible lending functionality, a magnet for capital from traders and on-chain whales.
One analyst summed up the situation this way:
“When funding rates heat up, traders follow profitability like sharks smelling blood. Today, Ethenas is the new open sea.”
ENA Breaks Key Resistance Levels
The ENA token broke the psychological barrier of $2.40, registering a 20% increase in less than 24 hours, with record volume on exchanges such as Binance and OKX. Wallets with more than 1 million ENA have increased their exposure, and staking smart contracts are showing lockup spikes exceeding $750 million this week alone.
This massive inflow consolidates Ethenas within the top 20 DeFi platforms by TVL (Total Value Locked) and opens the door to speculation of expansion into Layer 2s like Arbitrum or Base.
Risks and Next Steps
The Ethenas team has already announced that it will deploy new incentivized pools and auto-compounding strategies in August. However, experts warn: the rapid increase in TVL and price could attract flash loan attacks or exploits, a classic headache for DeFi protocols that grow too quickly.
Furthermore, the token's aggressive rise could invite opportunistic whales to take profits in resistance zones.
Topic Opinion:
Ethenas is taking advantage of the insatiable hunger for yield that always fuels DeFi cycles. It's a stark reminder that when rates spike, liquidity moves without loyalty, seeking juicier APYs, regardless of the actual risk.
The challenge for Ethenas will be to maintain trust: scale security, secure contracts, and maintain an active community that supports governance. If they succeed, they could become the next Aave or Compound of this multi-chain era.
But let's be clear: neither 20% daily nor record inflows guarantee stability. In DeFi, what comes in quickly, goes out even faster when rates fluctuate.
💬Would you join Ethenas APY farming, or would you prefer to stay away from booming protocols?
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