NEW: FREE Web3 Resume Cheat Sheet DOWNLOAD NOW

Arthur Hayes continues divesting Ethena (ENA)

In this post:

  • Arthur Hayes unstaked ENA once again, sending the funds to Bybit and Binance.
  • This is the second largest sale since late December, as Hayes presented a strategy of active trading in a choppy market.
  • Ethena decreased the supply of USDe, as ETH prices were weighed down to $3,200.

Crypto influencer Arthur Hayes sent two bulk transactions of Ethena (ENA) to Binance in the past couple of days. The transactions happen at a time when ENA trades near its higher range, but down from a recent peak above $1.20.

Crypto influencer Arthur Hayes may be divesting his Ethena (ENA) holdings, after two significant transactions to Binance a few weeks apart. Just weeks before the current trades, Hayes spelled out a new strategy for a choppy market amid economic and geopolitical insecurity. 

The recent ENA transactions are among the few big moves for Hayes in the past weeks. For now, his known wallets hold more than $26M worth of altcoins and tokens, mostly tied to the Ethereum DeFi ecosystem. Hayes has mentioned he expects the altcoin bull market to continue until March, while trying to make the best of trending projects and expanding DeFi value.

Arthur Hayes continues divesting Ethena (ENA)
Arthur Hayes actively bought and sold ENA to make use of the recent local peak, after buying at $0.67. | Source: Arkham Intelligence

The latest inflow of ENA was valued at $6.46M, split between Binance and Bybit. This is the first major inflow after December 21, when Hayes deposited 7M ENA valued at $8.47M at the time. Before the most recent sale, the known wallets of Hayes received unstaked coins from Ethena’s ENA Silo, similar to the previous transaction.

Hayes is not a long-term holder of ENA, instead quickly accumulating and divesting 16.79M ENA. Despite selling ENA, Hayes has recommended the project as a source of passive income, encouraging others to buy USDe, while trying to calm fears about unexpected de-pegging events. 

Most of the holdings were acquired during a short-term dip at $0.67, making the best of the expanded ENA price. The previous sale also happened at prices close to $1, for a total estimated profit of $7.7M. 

See also  Utah’s Bitcoin reserve bill could become the first state-level law in the US

The recent moves suggest a winding down of the position, as ENA is currently trading near the middle of its range. ENA is one of the tokens responsive to bullish runs, reflecting the year-end rally for Bitcoin (BTC) and Ethereum (ETH). 

Will ENA renew its rally?

The question of whale moves suggests the ENA rally may be over, while seeking a favorable price to realize gains. Soon after the sale, ENA slid toward $0.80, back to its levels from November. ENA sentiment shifts between an expectation for a breakout and a potential longer accumulation period, as the project adjusts to the market’s new levels. 

The sale happens at a time when ENA open interest is also trending downward, from over $600M to the $400M range. Most of the ENA leveraged positions are still long, and may be liquidated if the downward trend continues. 

Additional factors brought down ENA by around 9% in 24 hours. The selling happened at a time when altcoins and tokens were closely watched for forming a bottom, or extending their downward trend. At this point, the Altcoin Season Index is frozen at around 49 points, as the market consolidates and few altcoins are outperforming. 

Ethena winds down USDe supply

Ethena still carries $5.88B in value locked, based on the supply of USDe. The synthetic stablecoin benefits from an overall bullish expectation on Ethereum (ETH). After ETH dipped under $3,200, the trend may also affect the Ethena profitability. 

See also  Web3 security breaches dent the industry over $98M in January 2025

Ethena still adjusts its risk even during bear markets, which may further decrease the supply of USDe. The token has already spread to multiple DeFi protocols, and only a small part may unwind. 

During the 2024 bull market, USDe was the fastest-growing stablecoin to reach 5B in total supply. The token went on to rival even older stablecoins like DAI. Recently, the staked USDe (sUSDe) increased its premium to trade at $1.14, though remaining relatively illiquid. The main selling point of USDe is its relatively high passive yield of 29% for staking the asset. The staked version also allows for limited arbitrage through unstaking into USDe, though that option is not always available. 

Ethena is solidly within the top 10 of DeFi projects, but not yet in the top 5, which mostly hold value due to ETH staking. The protocol surpasses even Maker, Pendle, Morpho, and other relatively new DeFi hubs that are trying to build up liquidity.

Cryptopolitan Academy: How to Write a Web3 Resume That Lands Interviews - FREE Cheat Sheet

Share link:

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Most read

Loading Most Read articles...

Stay on top of crypto news, get daily updates in your inbox

Editor's choice

Loading Editor's Choice articles...
Subscribe to CryptoPolitan