Key takeaways
What’s Driving Athena’s Recent Price Drop?
A combination of token opening, falling revenues, and heavy investor sell-off are putting pressure on the ENA price.
How have investors’ actions affected Ethena’s market performance?
Net outflows of $5.72 billion and lower inflows dampened Ethena’s TVL and overall market sentiment.
Athens [ENA] It recorded a significant market decline, with assets falling by 10% during this period.
Market investors seem to be following an increasing downtrend, which increases the possibility of the asset falling further on the chart.
Sales of $5.7 billion affect ENA!
On the chain Feelings It shows a gradual lack of increasing interest among investors. The 30-day time frame indicates that investors continued to sell their assets via exchanges while they unlocked their tokens.
Between October 11 and November 12, net outflows totaled $5.72 billion, impacting the total value locked (TVL) of Ethena. At press time, Ethena’s TVL was $8.581 billion.
Source: Devilama
AMBCrypto is understood to have attributed this significant decline to the sharp drop in Ethena’s profits. To put this into perspective, ENA’s average daily earnings in Q3 fell from $109,462 to just $8,987 so far in Q4 of this year.
This indicates that Ethena’s profitability has been low as investors continue to withdraw money from the market.
StealthEx CEO Maria Carolla noted that macroeconomic factors shaped ENA’s earnings and warned that the situation could get worse.
“Until inflation indicators and Fed policy guidance provide clearer direction, high-beta assets like ENA are likely to remain under pressure in the near term.”
Unlocks and reduces ENA revenue pressure
The recent decline in Ethena prices stems from increasing downward pressure in the market.
On November 8th, the protocol unlocked $4.56 million worth of tokens, 0.2% of the circulating supply, with the S3 Airdrop service continuing, distributing approximately $149,858 daily.
These opens have added selling pressure at a time when the broader market is still recovering.
Meanwhile, Ethena protocol revenue also saw a sharp decline, further contributing to the downward momentum.
Source: Devilama
Recent reports show that Ethena’s revenue has declined along with its valuation, recording just $1,817 in the past day and $11,849 over the past seven days.
Declining protocol revenue is usually an early sign of declining user activity. A lower number of users in the market simply means that the protocol generates less revenue as on-chain activity decreases.
Artemis The data shows that transactions decreased to 24,500 during this period.
Flows decrease as spot selling rises
DeFiLlama reports that USD inflows to ENA have declined sharply, falling to negative $46 million, confirming a selling trend among cross-chain investors.
This is not isolated, as spot investors have also started selling their ENA holdings. It shows a total net inflow of $569,000 in withdrawals from centralized exchanges.
Source: Devilama
This represents one of the few periods in which ENA recorded weekly outflows. The average sale in the four main cases of ENA liquidation shows that $3.915 million worth of assets were sold.
This suggests that if sellers continue to dominate the market, overall selling could reach similar levels, adding further pressure on ENA’s market outlook.
