Ethena is set to conduct a significant token unlock on March 5, which may impact the market.
Details of the Unlock
According to Tokenomist data, Ethena will unlock tokens worth $728 million on March 5, adding 2.07 billion ENA to circulation. This action accounts for 66.19% of the total token supply.
Current Market Dynamics
Currently, there are 3.13 billion ENA tokens in circulation, with a market capitalization of $1.08 billion. ENA has dropped 18% over the past 24 hours. Technically, the token is trading at $0.3476 and is in a downtrend. Strong selling pressure and red candle dominance are likely driven by the recent token unlock.
Future Plans and Ethena Projects
Ethena is building a crypto-native alternative to traditional banking through its Ethereum-based synthetic dollar system, USDe. USDe is now the fourth largest stablecoin with a market cap of $5.4 billion. The company plans to launch its blockchain and a TradFi-compatible token, alongside iUSDe for institutional investors, set to be its focus in Q1 2025.
Ethena's token unlock could significantly impact the market. Investors should watch the company's next steps and market changes closely.
