ENA Falls as Ethena Protocol Net Withdrawals Reach $104 Million

ENA fell 6.57% over 24 hours to about $0.219 on Oct. 8 as net withdrawals from the Ethena protocol reached approximately $104.08 million, marking the largest withdrawal level since July.

The token traded below its 20-day exponential moving average of about $0.227. Its Relative Strength Index stood at 50.64, near the neutral midpoint.

The withdrawal figure measures capital moving out of tracked Ethena protocol positions. It does not establish that users sold ENA or that the withdrawals caused the token’s decline.

Ethena operates an Ethereum-based protocol for synthetic-dollar products. USDe is backed by crypto assets and hedging positions, while ENA provides governance rights.

The move came after Ethena’s investor allocation restructuring and Oct. 5 unlock. Team and foundation allocations remain subject to their existing vesting schedules.

The protocol’s governance proposal ties future ENA buybacks to USDe supply milestones. After the first milestone, the proposal would direct 95% of net revenue from listed business lines to ENA buybacks, with the remaining 5% allocated to growth.

The protocol withdrawals and ENA’s price decline represent separate market indicators. The available figures do not establish a causal relationship between them.

The proposal covers a future allocation mechanism rather than the Oct. 8 market movement.