Trader Incurs $13 Million Loss on Ethena Token Decline

The largest staker of the governance token Ethena (ENA) sold the majority of their deposit at a loss, as noted by analysts at Lookonchain.

The largest $ENA staker unstaked all 23.24M $ENA($17.3M) 13 hours ago and sold 19.36M $ENA($14.1M) at a loss.

He withdrew 23.24M $ENA($30M) from #Binance at $1.29 between Apr 10 and Apr 5.

He currently has 3.88M $ENA($2.74M) left, with a loss of more than $13M!… pic.twitter.com/T2Akf6havZ

— Lookonchain (@lookonchain) June 12, 2024

The user withdrew all 23.24 million ENA ($17.3 million) from staking. Between April 5 and April 10, the total value of these coins was $30 million, with an average token price of $1.29.

Since mid-April, ENA prices have been declining. On June 11, the trader sold 19.36 million ENA for $14.1 million. They now hold 3.88 million ENA ($2.74 million), resulting in losses exceeding $13 million.

According to CoinGecko, at the time of writing, the token is trading at $0.7202 with a market capitalization of $1.16 billion. 

In early April, the Ethena Labs team opened a claim page for 750 million ENA. Several centralized platforms, including Binance, listed the asset.

In the same month, developers increased rewards for those who locked a large volume of ENA in staking. The token responded with an 11% rise.