Token Unlock Releases and Large Holder Sell-Offs Drive Ethena's 80% Value Decline
- Ethena's ENA token dropped 80% to $0.31 amid massive unlocks and whale selling, with 45.4% of tokens released in November. - Robinhood listing and Binance's USDe buyback program offer limited support as 6.8B tokens circulate and 5.99B remain locked until 2026. - USDe's $8.9B TVL and multi-chain expansion highlight potential, but technical indicators signal a possible 37% further price decline. - Analysts warn ongoing unlocks, whale activity, and crypto market volatility could prolong ENA's bearish trend
Ethena's governance token, ENA, took a notable step into the mainstream financial sector this week by being officially listed on
These unlocks, which have already distributed $60 million to core team members and early backers, have heightened both retail and institutional wariness, according to Stocktwits. On the platform, retail traders remain pessimistic about ENA, voicing doubts about its recovery prospects. At the same time, large holders have also contributed to the selling pressure. Data from Nansen shows that whale-held ENA dropped from 65.24 million to 43.06 million between October 31 and November 6, sparking panic-driven sell-offs, as reported by
Despite the ongoing price drop, Ethena's broader ecosystem—especially its
However, technical signals remain bleak. Ethena's price is nearing a "death cross" on daily charts, a bearish indicator that could signal a further 37% drop, according to Crypto.news. The token has also shed 20% of its value in the past week, with its market cap falling from $3.7 billion to $2.3 billion, the report continued. Analysts attribute the weakness to a mix of token unlocks, whale sell-offs, and overall crypto market instability. Should
Ethena's tokenomics present both opportunities and challenges. While the Robinhood listing marks a step toward greater institutional acceptance, the protocol's dependence on token unlocks for funding development and rewarding early participants has led to ongoing supply pressures, Stocktwits observed. Currently, more than 6.8 billion ENA tokens are circulating, with another 5.99 billion locked and set to be released through 2026. This phased release strategy, intended to avoid market shocks, has nonetheless kept speculative enthusiasm subdued.
Looking forward, Ethena's trajectory may depend on the performance of USDe and the impact of its buyback programs. The stablecoin's deployment across 24 blockchains and integration with leading DeFi platforms point to strong adoption prospects, according to
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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