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Major ENA Unlock Weighs on Price and Raises Liquidity Concerns

Chaos Labs has flagged concentrated rehypothecation of USDe’s backing assets on Aave as a potential liquidity risk following a major ENA token unlock.

Ethena jumps 13% - ENA could hit $0.68 if THIS level holds
ethena
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Overview

  • On August 5, Ethena executed a scheduled unlock of 171.88 million ENA tokens, representing 2.7% of the circulating supply and worth roughly $105 million.
  • ENA’s price dipped about 3% to trade near $0.59 as technical support levels were tested after the unlock.
  • Whale wallets have reduced their ENA holdings by roughly 30% over the past week, lowering total large-holder balances to around 37.9 million tokens.
  • USDe supply remains at a record $9.5 billion after surging 75% in July to become the third-largest stablecoin by market capitalization.
  • Risk advisory Chaos Labs warns that over 55% of USDe’s backing assets, valued at $4.7 billion, are rehypothecated on Aave, raising systemic liquidity concerns.