The native token of Ethena, ENA, has been experiencing a substantial amount of selling pressure in recent weeks. This downward trend in price led to ENA plummeting to $0.73, marking its lowest point since May 20th. The consequences of this sharp decline have been particularly harsh on ENA stakers.
The Whale’s Move
In a shocking turn of events, the largest ENA staker, possessing 23.24 million ENA valued at approximately $17.3 million, unstaked their entire position on a Tuesday. Following the unstaking, the whale proceeded to sell 19.36 ENA, equivalent to over $14.1 million, incurring a substantial loss in the process. This individual had initially withdrawn 23.24 million ENA from Binance in early April when the token was trading at around $1.29. However, the recent sell-off left the investor with a mere 3.88 million ENA, valued at $2.74 million, resulting in a staggering loss exceeding $13 million.
Ethena’s Growing Ecosystem
Despite the setbacks faced by ENA, the ecosystem of Ethena has been steadily expanding. Data from DefiLlama indicates a continuous increase in the Total Value Locked (TVL) in the Ethena project, which soared to an impressive $3.44 billion by June 12th. Additionally, the USDe stablecoin within the Ethena ecosystem has witnessed remarkable growth since its public debut. Within the first week of its launch, the USDe supply surged to $400 million, eventually surpassing $2 billion within a mere two months. This rapid rise raised concerns, particularly in light of the collapse of Terra’s UST, an algorithmic stablecoin that faced a similar fate.
The turbulence faced by ENA underscores the volatile nature of the cryptocurrency market and the risks associated with token investments. While Ethena’s ecosystem continues to thrive and expand, individual token prices are susceptible to a myriad of factors, leading to significant price fluctuations. Investors and stakers alike must exercise caution and thorough research before engaging in speculative activities within the crypto space to minimize potential losses and navigate the ever-changing landscape of digital assets.