- The Ethereal Exchange integration proposal triggered a 20% increase in ENA price.
- The proposal indicates that 15% of future Ethereal governance tokens will be allocated to ENA holders.
- ENA’s price has retreated to $0.384 after peaking at $0.42, amidst elevated trading volume.
The recent integration proposal between Ethereal Exchange and the Ethena Network has generated considerable enthusiasm within the cryptocurrency space, resulting in significant price volatility for Ethena’s native token, ENA.
This integration aims to establish Ethereal, a decentralized exchange (DEX) for spot and perpetual futures trading, interconnected with Ethena’s reserve management and its native stablecoin, USDe.
Ethereal integration proposal
The proposal, submitted on September 29 to the Ethena governance forum by a pseudonymous author known as Fells0x, outlines the integration of the Ethereal DEX into Ethena’s reserve management from the outset, offering a fully on-chain mechanism for handling both spot and derivative positions supporting USDe.
This integration is expected to boost the utility and demand for USDe, which has established a solid presence in the market as the fourth-largest stablecoin, holding a market capitalization of $2.5 billion according to DeFiLlama.
An important aspect of the proposal is its pledge to designate 15% of any forthcoming Ethereal governance tokens to ENA holders, promoting synergy between the Ethereal team and the Ethena community.
Ethena price reaction
In reaction to the announcement, traders swiftly capitalized on the potential benefits outlined in the proposal, driving ENA’s price up by an impressive 20% to a high of $0.42.
The surge in enthusiasm was mirrored in trading volumes, which experienced a 145% increase within 24 hours, signifying heightened interest and optimism among investors. Additionally, the futures market saw a notable growth, with ENA futures open interest rising by over 13% within four hours.
However, the notorious volatility of cryptocurrency markets means fluctuations are common. At the time of reporting, ENA was being traded at $0.384, reflecting a significant drop from the earlier high of $0.42.
Despite these recent declines, ENA has demonstrated impressive resilience, having gained over 81.4% in the past two weeks.
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