Ethena's 8.21% Supply Shift Sparks 22% Price Surge as Market Weighs Volatility

A significant shift in Ethena’s (ENA) token supply has sparked renewed interest in the cryptocurrency market. An 8.21% stake in the token—equivalent to 1.23 billion ENA ($567 million)—was recently moved to a new wallet from Coinbase Prime custody, according to EtherScan data. This move positions the address as the fourth-largest holder of ENA, echoing similar whale activity observed during previous price dips in April and May, which preceded the current bull market [1]. The transfer, which included a test transaction of 10 ENA, has raised questions about whether the move signals further upward momentum or a strategic consolidation of market power.

ENA’s price action has shown mixed signals. While it fell 1% in the last 24 hours, the token surged 22% over the past week, with daily trading volume increasing by 45%. On a technical chart, ENA is retesting the $0.43 level—a 0.618 Fibonacci Retracement point—which analysts view as critical for confirming a potential breakout. A successful retest could push the price toward $0.70 or even the $1 target outlined by Ali Charts [1]. However, a failure to hold above $0.43 risks a return to the $0.25–$0.45 consolidation range, which ENA rejected over five times earlier this year. The token’s July rally, marked by a 74% surge in three weeks, has left it at a pivotal juncture.

Institutional activity adds complexity to the narrative. A derivative whale has initiated a 5X leveraged short position against ENA, depositing $7.51 million into Hyperliquid. This contrasts with the bullish implications of the recent supply shift, highlighting the token’s volatility and divergent market sentiment. Additionally, Ethena’s income statement reveals a decline in earnings for 2025 compared to 2024, with the first quarter of 2025 generating just $1 million in gains. The drop aligns with reduced user activity and lower fees, which may reflect a broader trend of liquidity absorption by large holders [1].

The concentration of 8% of ENA’s supply in a single wallet introduces risks of market manipulation. Critics argue that such large-scale withdrawals could amplify volatility, particularly if the whale’s strategy diverges from broader market trends. Proponents, however, see the move as a sign of sustained demand, citing ENA’s recent performance and institutional interest in Ethena’s ecosystem. Notably, the StablecoinX initiative, while separate from the current supply shift, underscores the project’s broader ambitions [1].

Looking ahead, the focus remains on ENA’s ability to maintain a breakout above $0.43. A sustained move past this level could validate the bullish case, while a retreat might signal a reassessment of momentum. The interplay between whale positioning, leveraged shorting, and technical levels will be key to determining Ethena’s next phase. Market participants are also watching for further on-chain activity from the new wallet, as its actions could influence both price stability and investor confidence.

Source: [1] [Ethena: What’s next after 8% ENA supply shifts to a single address?](https://ambcrypto.com/ethena-whats-next-after-8-ena-supply-shifts-to-a-single-address/)