Ethena erased some of the gains made on Friday, December 12, after on-chain data showed Arthur Hayes selling.
The Ethena (ENA) token fell to $1.10 from an intraday high of $1.2240. It is down over 16% from its peak this month.
Data from Nansen shows that Hayes, the co-founder and former CEO of BitMEX, transferred 7 million tokens worth $8.47 million to Binance. Moving a cryptocurrency out of a self-custody wallet is usually a sign that a crypto investor is selling.
According to Arkham, Hayes now owns 7.19 million ENA tokens, worth over $8.5 million. His other portfolio assets include Ethereum (ETH), Wilder World, Pendle (PENDLE) and Ethena Staked USDe.
Hayes’ sale came days after Donald Trump’s World Liberty Finance acquired 741,687 ENA tokens worth $823,000. Ethena has now proposed closer collaboration with WLFI, a move that could see sUSDe integrated into the upcoming DeFi Platform.
The total value locked in the Ethena ecosystem in the form of USDe stablecoins rose above $6 billion for the first time. This growth has made it the third largest stablecoin in the crypto industry after Tether and USD Coin.
USDe’s growth is mainly due to its high yield. According to its website, the yield on USDe’s stablecoins is 12%, much higher than what US Treasuries and most dividend ETFs offer.
Meanwhile, Polymarket users believe that the USDe stablecoin will not lose its $1 peg this year. According to the website, the coin has a chance of falling below 90 cents. The chance of it losing its peg was nearly 20% in May when analysts compared it to Terra.
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