Ethena's TVL Has Fallen 55% From October Peak, Now Sits at $6.63B

In late 2025, Ethena experienced a significant pullback in its total value locked (TVL). According to data analysis platforms, the liquid restaking protocol’s TVL has declined substantially from its all-time high, reflecting broader market dynamics affecting the DeFi sector. The project, which recently garnered significant attention in the crypto ecosystem, now faces headwinds that have eroded investor confidence.

Sharp Decline From Record Levels

The numbers tell a striking story. Ethena’s TVL has fallen from a remarkable $14.98 billion peak reached in early October 2025 to $6.63 billion, representing a devastating 55% decline in just over two months. This dramatic retreat underscores the volatility characteristic of emerging DeFi protocols, particularly those reliant on market sentiment and investor participation. The scale of the decline—nearly $8.35 billion in locked value—highlights how quickly fortunes can shift in the crypto space.

Market Context and Implications

Such dramatic TVL contractions are not uncommon in the DeFi landscape, where liquidity and user participation are highly sensitive to market conditions, regulatory developments, and competing protocols. Ethena’s situation reflects broader challenges facing the restaking sector, including increased competition from established players and shifting investor priorities. As the market continues to mature, protocols must demonstrate sustained utility and value proposition beyond initial hype cycles.

The movement in Ethena’s TVL serves as a reminder that strong initial momentum requires backing from genuine protocol fundamentals and long-term utility for preservation of user capital and confidence.