ENA Sees 20% Spike as Ethena Attracts $750M Inflows, Driven by Elevated Funding Rates

Ethena’s ENA Gains 20% as Inflows Surge and Yields Climb on Rising Funding Rates

July 21, 2025 — Ethena’s native token ENA rallied 20% on Sunday, hitting $0.50 for the first time since February, as the protocol recorded a surge in capital inflows amid rising funding rates across major crypto markets.

The renewed momentum follows a sharp uptick in yields generated by Ethena’s synthetic dollar, USDe. Backed by a mix of BTC, ETH, and SOL, and hedged through short perpetual futures positions, the protocol profits when funding rates are positive — passing a share of that income on to users.

Recent days have seen funding rates jump after an extended lull, according to CoinGlass data. Ethena is now offering investors nearly 10% in annualized yield — significantly above the returns from traditional low-risk instruments like money market funds.

As yields climbed, investor appetite followed. USDe attracted over $750 million in fresh inflows in the past few days, bringing its total supply to $6.09 billion — just shy of its all-time high of $6.1 billion, per DeFiLlama and Ethena’s dashboard.

ENA, which serves as the protocol’s governance token, has benefited directly from this growth. The token’s breakout reflects increasing confidence in Ethena’s on-chain yield strategy, as well as broader interest in DeFi protocols that can capitalize on market structure and rising rates.

With crypto markets firming and funding conditions improving, Ethena appears well-positioned to ride the current wave of yield-seeking capital.