ENA Token Plummets Amid Massive Sell-Off by Largest Staker, Faces $13 Million Loss

• ENA, the native token of Ethena, has been under significant pressure from sellers in recent weeks, hitting its lowest level since May 20th.
• This decline has led to substantial losses for those staking ENA.
• The largest ENA staker, who once held 23.24 million ENA, unstaked and sold a major portion of his holdings at a considerable loss.

Dive into the latest developments and insights surrounding Ethena’s ENA token, including market dynamics, ecosystem growth, and future outlook.

ENA Token Faces Intense Selling Pressure

In recent weeks, the native token of Ethena, known as ENA, has encountered significant selling pressure, bringing its value down to $0.73. This level marks the token’s weakest position since May 20th, highlighting a troubling period for its investors and stakeholders.

Major Stakeholder Unstakes and Sells ENA Holdings

Lookonchain has reported that the largest ENA staker, who initially had 23.24 million ENA tokens valued at approximately $17.3 million, decided to unstake their entire holding on Tuesday. In an unexpected move, this investor liquidated 19.36 million ENA tokens, worth over $14.1 million, incurring substantial losses in the process.

To provide context, this investor had initially transferred 23.24 million ENA from Binance between April 5 and April 10, when the token was trading at roughly $1.29. Following the recent sell-off, this investor now holds only 3.88 million ENA, valued at $2.74 million—resulting in a staggering loss of over $13 million.

Growth in Ethena Ecosystem Amidst Token Decline

Despite the challenges ENA is facing in the market, the Ethena ecosystem continues to grow. DefiLlama reports that the total value locked (TVL) in Ethena’s project has been increasing steadily, reaching an impressive $3.44 billion as of June 12th.

USDe Stablecoin Sees Significant Growth

Furthermore, the USDe stablecoin within the Ethena ecosystem has experienced remarkable growth since its public introduction. Within its first week, the USDe stablecoin’s supply surged to $400 million and subsequently exceeded $2 billion within just two months. While this growth is impressive, it has also raised concerns among market observers, particularly in light of the previous collapse of Terra’s UST algorithmic stablecoin.

Conclusion

In conclusion, Ethena’s ENA token is facing challenging times with notable selling pressure affecting its market price. However, the ecosystem shows promising growth trends, particularly with the increase in TVL and the success of the USDe stablecoin. It remains to be seen whether the ecosystem’s growth can help revitalize the ENA token or if the selling pressure will continue to drive its price downward.