Ethena Dips 5.6% as $100M Token Unlock and Aave Exposure Spur Liquidity Concerns

Ethena (ENA) is experiencing a downward trend amid a significant token unlock and growing concerns over its exposure to the Aave (AAVE) protocol. As of the latest data, the token is trading at $0.586, down 2.9% in the last 24 hours and down 5.6% over the past week, despite rising over 130% in the previous month [1]. The recent correction appears to coincide with a major unlock event and heightened scrutiny of Ethena’s financial strategy.

On August 5, 171.8 million ENA tokens were unlocked, representing 2.6% of the total supply and valued at around $100 million. Only 41% of Ethena’s token supply has been unlocked to date, but the newly available tokens could introduce sell pressure, especially if holders opt to liquidate. While Ethena’s expanding ecosystem partnerships and growing interest in token-based treasuries may provide some offset, the short-term liquidity pressure remains a key concern [1].

Market activity remains active, with a 24-hour spot trading volume of $1.01 billion, down 3.9%. Derivatives trading volume has also dropped to $3.19 billion, a 7.6% decrease, and open interest has fallen 3.6% to $1.06 billion, signaling a moderate cooling of speculative activity [1].

A growing source of concern comes from Ethena’s exposure to Aave. According to an August 2 post by risk advisory firm Chaos Labs, more than 55% of USDe’s backing assets, worth $4.7 billion, are now held on Aave. This rehypothecation strategy—where the same assets are used to back USDe and generate yield—raises systemic risk concerns, as the dual-use structure increases fragility. Chaos Labs warned that a deleveraging event, such as mass redemptions or a loss of confidence, could trigger a liquidity crunch, potentially impacting both Aave and Ethena [1].

With USDe’s supply rising 75% in the past month to $9.3 billion, the growing reliance on a single lending protocol has intensified scrutiny. Analysts are closely watching whether this concentration of risk will undermine overall stability, especially amid the recent price correction [1].

Technically, ENA’s price action is showing signs of weakening. The RSI is at 53, indicating neutral momentum, while Bollinger Bands signal reduced volatility following the recent pullback from the weekly high of $0.67. The token remains above both its 50-day and 100-day exponential moving averages, currently at $0.414 and $0.389, respectively, suggesting a longer-term bullish trend remains intact [1].

A break below the $0.56–$0.58 range could bring support at $0.52 into play. Conversely, any stabilization and fresh buying above $0.60 might push the price back toward $0.65 and beyond [1].

Source: [1] Ethena dips amid $106M token unlock — will Aave liquidity risk concerns deepen the slide? (https://crypto.news/ethena-dips-ena-token-unlock-aave-liquidity-risk-2025/)