cryptopotato.com
$ENA – the native token of Ethena – has been facing significant selling pressure in recent weeks. After an extended period of price declines, $ENA plunged to $0.73, representing its weakest price level since May 20th.
This, in turn, has translated to huge losses for $ENA stakers.
Lookonchain revealed that the largest $ENA staker, who had staked 23.24 million $ENA – worth around $17.3 million – unstaked their entire holding on Tuesday. In a surprising move, this whale then sold 19.36 $ENA – worth over $14.1 million – at a significant loss.
To put things into perspective, the on-chain data also revealed that this investor had initially withdrawn 23.24 million $ENA from Binance between April 5 and April 10, when the token was trading at around $1.29.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, after the recent sell-off, the investor is currently left with only 3.88 million $ENA – worth $2.74 million.
As a result, the whole ordeal translated to a loss of more than $13 million.
$ENA has failed to post a meaningful rebound despite its ecosystem growing steadily. According to the latest stats on DefiLlama, the TVL locked in the Ethena project has been on an upward trend, reaching a staggering $3.44 billion as of June 12th.
Moreover, the Ethena ecosystem’s USDe stablecoin has seen impressive growth since its public launch. In the first week alone, its supply reached $400 million before eventually surpassing $2 billion barely two months later.
The meteoric rise prompted concerns, especially considering the collapse of the ill-fated algorithmic stablecoin, Terra’s UST.