$ENA Causes of Volatility and Recent Events
đ Large Token Unlock
âą On August 5, 171.8 million ENA (~2.6â2.7% of circulating supply) were released into the market, worth approximately $100 million, which caused selling pressure
âą This triggered a decline of about â5.6% in price over the week, although the price had risen more than 140% in July.
đ Price Momentum Ahead
âą Before the ENA unlock, it increased by over 14% in one day, to â $0.62â0.623, which restored confidence and increased trading volumes by ~30%
âą However, indicators such as MACD indicate signs of weakness and a potential correction.
â ïž Risks: Dependence on Aave
âą More than 55% of USDe collateral is placed on the Aave platform, raising concerns about liquidity and systemic risks, especially during market stress.
âą A similar situation with the algorithmic stablecoin Terra from the last decade urges caution, although Ethena's architecture differs from Terra.