Ethena (ENA), the native token of the Ethena ecosystem, has faced immense selling pressure recently, culminating in a significant financial loss for its largest staker. The investor, who had a substantial holding in ENA, sold off a significant portion of their tokens at a considerable loss, reflecting the ongoing volatility and challenges within the cryptocurrency market.
ENA Token Plummets to Record Low
In recent weeks, ENA has experienced a steady decline in value, hitting its lowest price point of $0.73 since May 20th. This downward trajectory has greatly impacted ENA stakers, leading to substantial financial losses.
On Tuesday, the largest ENA staker, who initially held 23.24 million ENA tokens valued at approximately $17.3 million, made a dramatic move by unstaking their entire holding. Subsequently, this investor sold 19.36 million ENA tokens for over $14.1 million, incurring significant losses in the process.
Unstaking and Selling: The Financial Impact
Lookonchain, a blockchain analytics platform, disclosed that this whale investor had originally withdrawn 23.24 million ENA from Binance between April 5 and April 10, when the token was priced at around $1.29. After the recent sell-off, the investor retains only 3.88 million ENA, valued at $2.74 million. This sequence of transactions resulted in a staggering loss exceeding $13 million for the investor.
Ethena Ecosystem’s Growth Amid Token Decline
Despite the challenges faced by ENA, the Ethena ecosystem has continued to grow. According to DefiLlama, the total value locked (TVL) in the Ethena project has been on the rise, reaching $3.44 billion as of June 12th. This growth indicates a robust and expanding ecosystem, even as the native token struggles.
Additionally, Ethena’s USDe stablecoin has shown remarkable progress since its public launch. Within the first week, its supply surged to $400 million, and in less than two months, it surpassed $2 billion. This rapid growth has raised eyebrows, especially given the recent history of algorithmic stablecoins like Terra’s UST, which collapsed spectacularly.
Also Read: Impact of US Inflation Reports on Crypto Markets
