With only one week left until the conclusion of Ethena’s Season 2 airdrop event on September 2, the platform’s data reveals a mixed picture.
Ethena’s Total Value Locked (TVL) has declined to $2.92 billion, a significant drop from its peak of $3.612 billion in early July.
Moreover, the platform has experienced a net outflow of assets, with only two days of net growth since August.
The decline can be attributed to users seeking to avoid potential price drops caused by the airdrop.
Non-stablecoin staking users, such as those holding $ENA, are opting to sell in advance, while stablecoin users are giving up on the last few days of Sats points to pursue higher-yielding projects.
For instance, Abraxas Capital Mgmt redeemed $91.22 million of USDDe from Ethena in the past week, ranking first among redemption addresses.
距离 Ethena 第二季空投活动结束（9.2）只剩一周时间了，让我们看看八月以来的平台数据情况👩💻
1️⃣ TVL
目前 Ethena TVL 为 29.2 亿美金，已跌破 30 亿，较七月初的 TVL 峰值（36.12 亿美金）流失超六亿美金；根据 DeFiLama 数据显示，其 TVL 自八月以来仅有两天为净增长，而净流出资产价值高达 2.8… pic.twitter.com/Tect4kv2VG— Ai 姨 (@ai_9684xtpa) August 28, 2024
Ethena Protocol Yield Plummets From Peak Level
Furthermore, Ethena’s protocol yield has plummeted from a peak of 113.34% in early March to a mere 1.38% as of August 21. This correlation with market trends is evident, with the platform’s yield struggling in bearish market conditions. The Sats activity, set to terminate when the supply of stablecoin USDe reaches 5 billion, has raised questions about the airdrop’s specifics, including the amount and rules. The latest ENA token economics states that airdrop recipients must pledge at least 50% of their tokens to avoid losing the unallocated portion, aiming to mitigate selling pressure. As the event concludes, users must decide whether to sell or hold their ENA tokens.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news!
Image Source: Photo by Kyle Hinkson on Unsplash // Image Effects by Colorcinch