Ethena TVL has fallen 55% since reaching record highs in early Q4 2025

Ethena, a major stablecoin protocol, experienced a sharp contraction in its total value locked (TVL), according to data disclosed by leading DeFi analytics platform unfolded and reported by PANews. The project’s TVL has fallen from a record high of $14.98 billion reached on October 3, 2025, down to $6.63 billion, representing a decline exceeding 55% from its peak.

Significant Drawdown from Historical Highs

The substantial decrease in TVL marks one of the more notable pullbacks observed in the DeFi sector. The $8.35 billion outflow—representing the magnitude of the decline—reflects shifting market sentiment and potentially broader concerns about protocol sustainability or user confidence. This retraction has fallen in line with broader market volatility patterns witnessed across the cryptocurrency landscape during the final quarters of 2025.

What This Means for the Protocol

The TVL contraction carries important implications for Ethena’s operational capacity and future growth trajectory. While such fluctuations are not uncommon in DeFi ecosystems where user capital remains fluid, the severity of this pullback warrants attention from both investors and protocol observers. The decline from nearly $15 billion to under $7 billion suggests that significant liquidity has either migrated to competing platforms or been withdrawn from the DeFi space entirely. Market participants continue to monitor whether Ethena’s metrics will stabilize or whether TVL has fallen further in the weeks following December’s data collection.