ENA faces sales pressure, large stakers abandon the coin
The digital coin of Ethena, known as ENA, has experienced a pronounced downturn over the last few weeks. Following continuous drops in its value, ENA plummeted to a low of $0.73, marking its lowest value point since the 20th of May.
This downtrend has led to substantial financial setbacks for investors staking ENA.
Insights provided by Lookonchain disclosed that the leading ENA investor, with a massive stake of 23.24 million ENA – valued approximately at $17.3 million – removed their entire stake on Tuesday. In a move that startled many, this giant investor proceeded to offload 19.36 million ENA – translating to over $14.1 million – at a notable loss.
For added context, blockchain data indicated this investor initially transferred 23.24 million ENA out of Binance in the timeframe of April 5 to April 10, during which the cryptocurrency's price hovered around $1.29. Nonetheless, after the recent market sell-down, this stakeholder now possesses just 3.88 million ENA, valued at around $2.74 million.
Consequently, this sequence of events culminated in a staggering financial hit exceeding $13 million.
Despite the expansion and development within its ecosystem, ENA has not demonstrated a significant recovery. Current figures from DefiLlama showcase a notable rise in the total value locked (TVL) within the Ethena initiative, soaring to an impressive $3.44 billion as of June 12th.
In addition, the launch of Ethena's USDe stablecoin has been met with phenomenal adoption rates. Within its initial week, its circulating supply reached $400 million and astonishingly broke through the $2 billion mark in just under two months.
This rapid growth has sparked debates and cautionary tales, especially in light of the demise of Terra’s algorithmic stablecoin, UST, which similarly experienced a quick ascendancy before its downfall.
