Ethena, the rapidly growing decentralized stablecoin platform, has emerged as the sixth-largest project by Total Value Locked (TVL), boasting an impressive $6.009 billion.
The platform’s native stablecoin, USDe, has gained significant traction and is now the third-largest stablecoin in circulation, with a supply of 6 billion.
Ethena is now nr 6th largest project by TVL
Nr 5 before year end?
pic.twitter.com/wtpWTX9MoG
— Seraphim (@MacroMate8) December 26, 2024
However, despite Ethena’s rapid rise, recent market turbulence has triggered notable sell-offs among major holders of its governance token, $ENA. Over the past 13 hours, two prominent investors have unstaked a combined total of 3.36 million $ENA tokens, valued at $3.17 million, and transferred these holdings to Binance. This move has raised concerns of potential bearish sentiment among influential market participants.
Market drop triggers whales to panic sell $ENA!
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
— Lookonchain (@lookonchain) December 26, 2024
The governance token, ENA, has been touted as a promising investment due to Ethena’s rapid growth and adoption. However, investors should approach with caution, as a significant token unlock is on the horizon. On April 2, 2025, nearly 14% of ENA’s total supply will be released to the team and early investors, which could increase selling pressure and impact the token’s price.
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.
NOTE: On April 2, 2025 almost 14% of ENA’s token… pic.twitter.com/KQVOOv2kkn— DaveLevine0com (@DaveLevine0com) December 23, 2024
While Ethena’s rise as a decentralized stablecoin project demonstrates its potential, the actions of major token holders and the upcoming supply unlock introduce uncertainties. Investors should weigh these factors carefully before making investment decisions regarding $ENA.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any service.
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