ENA, the native token of Ethena, has been experiencing considerable selling pressure in recent weeks. This downward trend led to ENA plummeting to $0.73, marking its lowest price point since May 20th. As a result, ENA stakers have suffered substantial losses, with the largest ENA staker unstaking their entire 23.24 million ENA holding, valued at approximately $17.3 million, and subsequently selling 19.36 ENA for over $14.1 million at a significant loss.
Staker’s Massive Loss
The data from Lookonchain unveiled that the investor who unstaked their ENA tokens had initially withdrawn 23.24 million ENA from Binance between April 5 and April 10 when the token was trading at around $1.29. However, following the recent downward spiral, the investor is now left with only 3.88 million ENA, worth $2.74 million, resulting in a staggering loss of more than $13 million.
Failure to Recover Despite Ecosystem Growth
Despite the steady expansion of the Ethena ecosystem, ENA has failed to show any significant recovery. While the Total Value Locked (TVL) in the Ethena project has been on an upward trajectory, reaching $3.44 billion as of June 12th, and the USDe stablecoin within the Ethena ecosystem has witnessed remarkable growth since its public launch, hitting $2 billion within two months of its debut. The surge in growth has raised concerns, particularly in light of the collapse of Terra’s UST stablecoin.
The recent downfall of ENA and the subsequent losses incurred by stakers serve as a cautionary tale for investors in the cryptocurrency space. Despite the promising growth of the Ethena ecosystem, market volatility and selling pressure can have significant implications for token holders. It is imperative for investors to conduct thorough research and risk assessment before engaging in staking activities to mitigate potential losses in the volatile crypto market.
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