$ENA Causes of Volatility and Recent Events

📌 Large Token Unlock

• On August 5, 171.8 million ENA (~2.6–2.7% of circulating supply) were released into the market, worth approximately $100 million, which caused selling pressure

• This triggered a decline of about –5.6% in price over the week, although the price had risen more than 140% in July.

📈 Price Momentum Ahead

• Before the ENA unlock, it increased by over 14% in one day, to ≈ $0.62–0.623, which restored confidence and increased trading volumes by ~30%

• However, indicators such as MACD indicate signs of weakness and a potential correction.

⚠️ Risks: Dependence on Aave

• More than 55% of USDe collateral is placed on the Aave platform, raising concerns about liquidity and systemic risks, especially during market stress.

• A similar situation with the algorithmic stablecoin Terra from the last decade urges caution, although Ethena's architecture differs from Terra.