Ethena Price Drops Amid Imminent Token Unlock

Ethena (ENA) saw its price drop by approximately 6% over the last 24 hours, largely due to market anticipation of an imminent token unlock.

A recent post on October 1 highlighted that the start of October would be an 'unlock week,' specifically noting an ENA unlock of about 40.63M tokens, around $11M, on October 2. This upcoming unlock, combined with thin altcoin liquidity, is expected to increase short-term selling pressure.

Traders often front-run such events, leading to pre-hedging, selling into strength, and marking down prices in anticipation of extra supply.