What Is Ethena (ENA) and Why Did Its Price Drop 5.31% in 24 Hours?

ENA's market cap drops to $39.73 billion amid 5.31% price decline

Ethena (ENA) has experienced a significant market downturn, with its market capitalization falling to $39.73 billion amidst a troubling 5.31% price decline. This drop is part of a broader negative trend that has plagued ENA throughout 2025. Technical indicators reveal a persistently bearish sentiment according to analysis from multiple trading platforms.

The price decline triggered considerable market repercussions, most notably in the form of substantial liquidations on the Hyperliquid platform. On October 23, ENA saw a sharp 10% decline within just two minutes, leading to $47.4 million in liquidations as leveraged positions were forcibly closed.

Despite the overall negative trajectory, whale investors appear to be accumulating ENA during this dip, suggesting institutional confidence in a potential future rebound. The token now trades near its $0.40 horizontal support level, significantly below its 2025 all-time high of $1.5208 recorded on April 11.

This market behavior echoes broader volatility in the cryptocurrency sector, with October 2025 experiencing one of the most severe liquidation events in crypto history, wiping out nearly $20 billion in leveraged positions across the market within a 24-hour period.

Circulating supply reaches 7.16 billion ENA tokens

According to the latest market data, Ethena's circulating supply has reached 7.16 billion ENA tokens out of a maximum supply cap of 15 billion. This represents approximately 47.71% of the total potential supply in circulation, indicating that over half of the tokens remain locked or unreleased. With this current circulating supply, Ethena has established a market capitalization of $2.86 billion at the current price of $0.3999.

The token supply metrics reveal important aspects of Ethena's market position:

Recent data from token tracking services indicates upcoming token unlocks for ENA. Various reports suggest different values, with estimates ranging from $48.88 million to $78.96 million worth of tokens scheduled for release in the coming week. These unlocks could potentially increase the circulating supply and impact market dynamics.

The current supply ratio demonstrates a relatively balanced distribution compared to many newer cryptocurrency projects that often have less than 30% of their tokens in circulation. This higher circulation percentage suggests Ethena has already distributed a significant portion of its token supply, which may contribute to its current market stability and ranking at position 44 among cryptocurrencies by market capitalization.

24-hour trading volume hits $257 million across 3 active markets

Ethena (ENA) has demonstrated remarkable market activity with its 24-hour trading volume reaching an impressive $257 million across three active markets. This substantial trading volume reflects strong investor engagement during a period of significant market volatility. The surge in trading activity correlates with institutional interest in ENA, which currently ranks 44th by market capitalization at approximately $2.86 billion.

Market data indicates ENA's trading patterns have shown notable fluctuation recently, with price movements creating opportunities for active traders:

The current trading volume represents approximately 9% of ENA's circulating market capitalization, indicating significant liquidity in the market. This level of trading activity is particularly noteworthy considering recent market sentiment, which currently registers in the "Fear" zone with a VIX reading of 29.

ENA's performance deserves attention from market participants as the asset continues to demonstrate resilience following its dramatic price event on October 10, when it temporarily plunged to $0.1299 before recovering. The current trading volume suggests market participants are actively reassessing ENA's value proposition as a synthetic dollar protocol built on Ethereum that aims to provide a crypto-native solution for dollar-denominated savings.