The post Analyst Explains Why Retail Investors Should Stay Away From Ethena (ENA) appeared on BitcoinEthereumNews.com.

Ethena (ENA) has gained significant traction ever since its launch, but its price performance gains excitement and skepticism simultaneously. Considerable concerns exist as the token has not created a new ATH in a year. Adding to the skepticism, one crypto analyst warns the retail investors to stay away from this altcoin. Why? Let’s discuss this. Analyst Reasons Why Ethena Is a Risky Investment Apart from Ethana’s price performance, the most significant concern is high valuation. Crypto analyst ‘DeFi Mochi’ claims that the ENA’s fully diluted valuation (FDV) stands at a staggering $6.7 billion, whereas early investors got in at an average FDV of just $82 million. This means the early investors are already making 72x despite the current crypto market crash. Although this is an impressive point, there’s a high risk of sell-off, putting retail investors at risk of losing everything. This is because their trade could excite liquidity for early adopters, as they would rush to take profits. Another critical point or red flag is that there’s high Venture Capital (VC) dominance, making it vulnerable to sell off again. In addition, the ENA token unlock is another factor to consider. Just a few days ago, 2.07 billion tokens were unlocked, and 937.5 million tokens will be released on April 2, 2025, which could lead to significant downward pressure on the ENA price. Based on these points, crypto analysts advised new investors to stay cautious about this altcoin’s price performance. How’s Ethena Price’s Performance Today? After a significant recovery, the Ethena price gained bullish momentum. It trades at $0.4499, with a 24-hour volume of $436.92 million, showing a high demand among investors. Although the token is handling the market turbulence quite well, it is 70% away from its ATH of $1.52, set a year ago. Looking at its derivative data,…

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Filed under: News - @ March 11, 2025 12:17 am