Ethena’s native stablecoin, USDe, has surged in popularity, cementing its position as the third-largest stablecoin in circulation with a supply of 6 billion. This milestone underscores Ethena’s rapid growth as a decentralized stablecoin platform, drawing attention from both retail and institutional investors. However, recent developments surrounding the platform’s governance token, $ENA, have raised eyebrows in the crypto community.
Ethena is now nr 6th largest project by TVL
— Seraphim (@MacroMate8) December 26, 2024
Nr 5 before year end? 👀 pic.twitter.com/wtpWTX9MoG
Over the past 13 hours, two prominent investors unstaked a combined total of 3.36 million $ENA tokens, valued at approximately $3.17 million, and transferred these holdings to Binance. This significant move has sparked concerns about potential bearish sentiment among influential market participants. Given Ethena’s meteoric rise, the actions of these major holders could signal a shift in market dynamics, adding to the token’s volatility.
Market drop triggers whales to panic sell $ENA!
— Lookonchain (@lookonchain) December 26, 2024
2 whales unstaked 3.36M $ENA($3.17M) and deposited to #Binance 1 hour ago.https://t.co/dk7j71susRhttps://t.co/CzETXnvYD9 pic.twitter.com/3SgggBBV1E
The governance token, $ENA, has been hailed as a promising investment due to the platform’s rapid adoption. Ethena’s innovative approach to decentralized finance and the growing traction of USDe have made $ENA an attractive asset. However, investors must tread carefully, as looming factors could weigh heavily on its price.
On April 2, 2025, a significant token unlock will release nearly 14% of $ENA’s total supply to the team and early investors. This influx of unlocked tokens could increase selling pressure, potentially leading to price declines. For current and prospective investors, this development highlights the importance of timing and market sentiment analysis when considering $ENA as part of their portfolio.
Ethena is a new rapidly growing decentralized stable coin, USDe. It is already the third largest stable coin with 6 billion circulating supply. It's governance token ENA may be a good investment to benefit from this growth.
— DaveLevine0com (@DaveLevine0com) December 23, 2024
NOTE: On April 2, 2025 almost 14% of ENA's token… pic.twitter.com/KQVOOv2kkn
Ethena’s success with USDe illustrates its potential to challenge established stablecoins, but the governance token’s trajectory remains uncertain. The platform’s rapid ascent contrasts with the caution warranted by recent sell-offs and the impending token unlock.
For investors, staying informed is crucial. Monitoring on-chain data, tracking whale activity, and assessing the broader market environment can provide insights into $ENA’s performance. While Ethena’s achievements signal long-term promise, the immediate challenges facing $ENA require careful evaluation.
In the fast-paced world of decentralized finance, Ethena’s dual narrative of success and uncertainty serves as a reminder of the risks and opportunities inherent in cryptocurrency investments. As the April 2025 unlock approaches, all eyes will be on $ENA to determine whether it can withstand the pressures of a maturing market.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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