{"id":6781,"date":"2025-08-05T09:38:22","date_gmt":"2025-08-05T09:38:22","guid":{"rendered":"https:\/\/bitunikey.com\/news\/ethena-dips-amid-106m-token-unlock-will-aave-liquidity-risk-concerns-deepen-the-slide\/"},"modified":"2025-08-05T09:38:30","modified_gmt":"2025-08-05T09:38:30","slug":"ethena-dips-amid-106m-token-unlock-will-aave-liquidity-risk-concerns-deepen-the-slide","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/ethena-dips-amid-106m-token-unlock-will-aave-liquidity-risk-concerns-deepen-the-slide\/","title":{"rendered":"Ethena dips amid $106M token unlock \u2014 will Aave liquidity risk concerns deepen the slide?"},"content":{"rendered":"<div class=\"post-detail__content blocks\">\n<p class=\"is-style-lead\">Ethena is trading lower as fresh concerns around liquidity risks and a major token unlock weigh on investor sentiment.<\/p>\n<div id=\"cn-block-summary-block_3c12f26e3d25bc35408b4786a64795ab\" class=\"cn-block-summary\">\n<div class=\"cn-block-summary__nav tabs\">\n        <span class=\"tabs__item is-selected\">Summary<\/span>\n    <\/div>\n<div class=\"cn-block-summary__content\">\n<ul class=\"wp-block-list\">\n<li>Ethena unlocked $106M in ENA tokens, adding possible sell pressure.<\/li>\n<li>Chaos Labs warned of liquidity risks from Ethena\u2019s $4.7B Aave exposure.<\/li>\n<li>Technicals show weakening momentum, but major support levels still hold.<\/li>\n<\/ul><\/div>\n<\/div>\n<p><!-- .cn-block-summary --><\/p>\n<p>As of this writing, Ethena (ENA) is trading at $0.586, down 2.9% over the last day. Despite rising more than 130% over the previous month, it has dropped 5.6% in the last week. The recent correction occurs as traders assess the impact of a significant supply unlock and growing risks associated with Ethena\u2019s interaction with the Aave (AAVE) protocol.<\/p>\n<h2 class=\"wp-block-heading\">Token unlock raises supply-side pressures<\/h2>\n<p>On Aug. 5, 171.8 million ENA tokens, worth roughly $100 million and accounting for 2.6% of the total supply, were <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/tokenomist.ai\/ethena\" target=\"_blank\">unlocked<\/a>. Only 41% of ENA\u2019s entire supply has been unlocked so far, and the most recent tranche could add sell pressure on the market, particularly if recipients decide to liquidate.\u00a0<\/p>\n<p>However, Ethena\u2019s recent growth, driven by strong ecosystem partnerships and growing corporate interest in token-based treasuries, may ease some of this pressure.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<p>Despite the unlock, market activity is still high. The 24-hour spot trading volume for ENA stands at $1.01 billion, a 3.9% decrease.\u00a0According to Coinglass <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.coinglass.com\/currencies\/ENA\" target=\"_blank\">data<\/a>, derivatives volume fell 7.6% to $3.19 billion, while open interest fell 3.6% to $1.06 billion, indicating a slight cooling of speculative activity.<\/p>\n<h2 class=\"wp-block-heading\">Aave exposure draws scrutiny from risk analysts<\/h2>\n<p>Market watchers are closely monitoring Ethena\u2019s growing presence on Aave in addition to the unlock. According to an Aug. 2 <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/governance.aave.com\/t\/aave-s-growing-exposure-to-ethena-risk-implications-throughout-the-growth-and-contraction-cycles-of-usde\/22791\" target=\"_blank\">post<\/a> by risk advisory firm Chaos Labs, Aave now holds more than 55% of USDe\u2019s (USDE) backing assets, valued at $4.7 billion. <\/p>\n<p>This strategy, known as rehypothecation, uses the same assets to support USDe and produce yield on lending protocols. Despite being prevalent in traditional finance, the dual-use nature of these reserves increases systemic fragility.<\/p>\n<p>Chaos Labs cautions that a deleveraging event, like mass redemptions or waning trust, might lead to a liquidity crunch that would affect both Aave and Ethena. Concerns are growing that too much reliance on a single lending protocol may undermine stability,\u00a0 especially as USDe supply has increased 75% in the last month to a record $9.3 billion.<\/p>\n<h2 class=\"wp-block-heading\">Ethena technical analysis<\/h2>\n<p>ENA\u2019s price action is currently cooling, but important support levels are still in place. At 53, the relative strength index indicates neutral momentum. Bollinger Bands indicate a decrease in volatility following the recent decline from the weekly high of $0.67.\u00a0<\/p>\n<figure class=\"wp-block-image size-large\"><picture decoding=\"async\" class=\"wp-image-14402714\"><source type=\"image\/webp\" ><\/source><\/p>\n<\/picture><figcaption class=\"wp-element-caption\">Ethena daily chart. Credit: crypto.news<\/figcaption><\/figure>\n<p>Most moving averages are still pointing upward. ENA is trading above both its 50-day and 100-day exponential moving averages, which are at $0.414 and $0.389, respectively. Despite the short-term volatility, this supports a longer-term bullish outlook.\u00a0<\/p>\n<p>A pullback toward $0.52 might be possible if the price breaks below the $0.56\u2013$0.58 range. However, if market conditions stabilize, fresh buying above $0.60 might lead to a retest of $0.65 and above.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Ethena is trading lower as fresh concerns around liquidity risks and a major token unlock weigh on investor sentiment. Summary Ethena unlocked $106M in ENA tokens, adding possible sell pressure.&hellip;<\/p>\n","protected":false},"author":1,"featured_media":1672,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-6781","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/6781","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=6781"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/6781\/revisions"}],"predecessor-version":[{"id":6782,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/6781\/revisions\/6782"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/1672"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=6781"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=6781"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=6781"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}