Ethena, a synthetic dollar protocol built on the Ethereum blockchain, recently witnessed significant trading activity involving its native token, $ENA. According to insights from Lookonchain, a notable investor made substantial transactions that resulted in a considerable financial loss.
On April 5, the investor removed 6.01 million $ENA, valued at $5.71 million, from the Binance exchange platform. During then, each token was priced at $0.95. This initial move involved staking the $ENA tokens as the investor aimed to benefit from potential price increases.
The price of $ENA rose on April 10, as the token hit $1.44. The same investor withdrew an additional 3.32 million $ENA, then worth $4.76 million, from Binance. This was a strategic decision during a market high.
However, the trading scenario took a downturn. After April 10, the value of $ENA began to decrease sharply. By April 25, the ongoing fall in prices prompted the investors to start unstaking and selling their holdings at a noticeable loss.
Recent data shows that the investor has since returned a total of 8.33 million $ENA to Binance. These were deposited at an average price of $0.83 per token, totaling $6.94 million. With about 1 million $ENA remaining in their possession, valued at $823,000, the total loss amounted to $2.71 million. This sequence of events underscores the volatile nature of cryptocurrency investments and the significant risks involved in trading and staking within such a dynamic market.
Over the past 24 hours, Ethena’s price has seen a significant drop. The cryptocurrency was trading at $0.7962 at press time, marking a 6.10% decrease. ENA’s market capitalization has also fallen to $1.21 billion. Trading volume within this period declined by nearly 10%, reaching $139.37 million.
