Ethena (ENA) Falls to $0.17 as Binance Hack Sales and Token Unlock Pressure Mount
Ethena's ENA token fell to around $0.17 on Monday, November 2, extending its decline as selling linked to the October 29 Binance security breach and an upcoming token unlock added pressure to an already weakening altcoin market. ENA dropped more than 6% over 24 hours and lost approximately 18% over seven days, significantly underperforming Bitcoin and Ethereum.
Bitcoin declined about 1.2% over the same 24-hour period, while Ethereum's ETH token fell approximately 3% over the previous seven days. Other altcoins, including NEAR, ZEC and WLD, also recorded losses of 5% or more as broader market weakness weighed on cryptocurrency prices.
Binance Hack-Linked ENA Sales Add to Market Pressure
The recent decline follows reports that the attacker behind the October 29 Binance security breach sold a substantial amount of ENA. Crypto.news reported that blockchain analytics firm Lookonchain identified the sale of 217.5 million ENA for $33.93 million, with the tokens exchanged for Ether at an average price of approximately $0.16.
ENA was one of seven altcoins reportedly converted by the attacker. According to Crypto Times, the transactions involved a combined 70,480 ETH valued at approximately $158.25 million across the seven tokens.
The reported transactions have added another potential source of selling pressure for ENA as traders assess the impact of assets associated with the security breach. The available information does not establish how much of the reported selling directly contributed to the token's latest price decline.
Ethena-Linked Wallet Transfer Raises Questions
Binance has reportedly allocated more than $6.34 billion in company funds to compensate affected users, according to Bloomingbit. The publication also reported that a wallet linked to Ethena deposited 128.6 million ENA, valued at $24.33 million, to Binance.
The transfer raised the possibility that the deposit could be connected to an over-the-counter transaction intended to help replace stolen tokens. However, Crypto Times reported that neither Binance nor Ethena had confirmed the purpose of the transfer at the time of publication.
Without confirmation from either party, the reason for the deposit remains unclear. The reported transfer should therefore not be treated as evidence that an agreement to replace stolen tokens has been reached.
November 5 ENA Token Unlock Could Increase Supply
ENA also faces a scheduled token unlock this week. CoinDesk's weekly cryptocurrency calendar lists an unlock for November 5, equivalent to 0.88% of the token's circulating supply and valued at $17.86 million.
Token unlocks release previously restricted tokens into circulation and can increase the amount of an asset available for trading. Their effect on market prices depends on factors including recipients' decisions to sell, prevailing demand and broader market conditions.
Estimates of token unlocks can vary between data providers. The reported November 5 schedule nevertheless represents another factor market participants may monitor as ENA continues to trade under pressure.
ENA Extends Its Monthly Decline
The token's weakness extends beyond the latest daily losses. Data from DiarioBitcoin showed ENA down approximately 25.5% over 30 days as of November 2, with its price trading below short-term moving averages.
The combination of reported hack-related sales, uncertainty surrounding the Ethena-linked wallet transfer and the upcoming token unlock has placed attention on potential changes in available supply. Traders are likely to monitor further Binance-related token movements and the market's response to the scheduled unlock as they assess ENA's near-term direction.
source: bsc.news
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
Check out other news and articles on Google News
Disclaimer:
The articles on Hokanews are here to keep you updated on the latest buzz in crypto, tech, and beyond—but they’re not financial advice. We’re sharing info, trends, and insights, not telling you to buy, sell, or invest. Always do your own homework before making any money moves.
Hokanews isn’t responsible for any losses, gains, or chaos that might happen if you act on what you read here. Investment decisions should come from your own research—and, ideally, guidance from a qualified financial advisor. Remember: crypto and tech move fast, info changes in a blink, and while we aim for accuracy, we can’t promise it’s 100% complete or up-to-date.