ENA Token Faces Selling Pressure and Stakers Experience Huge Losses

ENA, the native token of Ethena, has been experiencing significant selling pressure in recent weeks. This has led to a drastic decline in its price, with ENA plummeting to $0.73, marking its lowest level since May 20th. As a consequence, ENA stakers have suffered substantial losses due to this sudden downturn in the token’s value.

Reports from Lookonchain have revealed that the largest ENA staker, who had initially staked 23.24 million ENA valued at approximately $17.3 million, made a surprising move. This investor decided to unstake their entire holding on Tuesday and subsequently sold 19.36 million ENA, equivalent to over $14.1 million, in a significant loss. The on-chain data further disclosed that this whale had withdrawn the 23.24 million ENA from Binance in early April when the token was trading at $1.29. However, following the recent sell-off, the investor is now left with only 3.88 million ENA, valued at $2.74 million, resulting in a loss exceeding $13 million.

Despite the Ethena project’s ecosystem experiencing steady growth, ENA has failed to stage a notable recovery. Data from DefiLlama indicates that the Total Value Locked (TVL) in the Ethena project has been steadily increasing, reaching an impressive $3.44 billion by June 12th. Additionally, the USDe stablecoin within the Ethena ecosystem has demonstrated remarkable growth since its public launch. Within the first week, its supply reached $400 million and quickly surpassed $2 billion within a span of two months. However, concerns have arisen due to this rapid expansion, especially in light of the collapse of Terra’s UST stablecoin.

The ENA token has been under immense selling pressure recently, resulting in a sharp decline in its price and substantial losses for stakers. Despite the growth in the Ethena ecosystem, ENA has struggled to recover from the sell-off. The unexpected actions of the largest ENA staker and the concerns raised about the stability of the USDe stablecoin have added to the uncertainty surrounding the token’s future. Investors and stakeholders in the Ethena project will need to closely monitor developments and adapt their strategies accordingly to navigate these challenging times in the crypto market.