Crypto influencer Arthur Hayes has sent two huge transactions of Ethena (ENA) to Binance over the last few days. The transaction is coming as the token is moving close to its higher region, but still down from its all-time high of $1.20.
The move may signify that Hayes is divesting his holdings after two of his transactions were tracked to Binance, spanning a week apart. Before the transactions, Hayes discussed a new strategy that could be used in a choppy market as economic and geopolitical tensions increase.
The recent transactions are a few of the ones he made over the last few months. Presently, his wallets hold $26 million worth of several tokens in the Ethereum ecosystem. He expects the altcoin boom to remain till March, trying to take advantage of the market. His latest move, a $6.4M transfer of ENA, moved into wallets on Binance and Bybit. This is his first significant deposit, after he made $8.4M worth of ENA transfer in December.
Is ENA back on track with a rally?
The whale movement has suggested that the ENA rally may be over, while it continues to seek gains. After the huge sales, ENA dropped to its $0.8 price, a level it last saw in November. The project is still waiting for a breakout, as its accumulation period continues with the project adjusting to new levels.
The development is also coming as interest in ENA dropped from $600M to $400M. However, the long positions held may be liquidated if the token continues its downward spiral. Additional factors have also dropped ENA by 9% in the last 24 hours.
Ethena reduces USDe supply
Ethena still holds $5.8B in locked value, with the figure based on the supply of USDe. The stablecoin is currently feeding off the expectations of a surge in the price of Ethereum. With ETH also dropping, it may have a telling effect on the synthetic stablecoin. However, Ethena still adjusts its risk during a bear market, which will trigger a reduction of USDe.
USDe became the fastest stablecoin to hit 5 billion in total supply during the 2024 bull run. The token became a competition to even older stablecoins like DAI. Its main appeal is the passive yield of 29% obtained from staking the asset. Ethena has made its way into the top 10 in DeFi products but is still struggling to enter the top 5. The project is ahead of most new ones trying to create liquidity in the DeFi ecosystem.