Ethereal Exchange's proposed merger caused the ENA price to increase by 20%. The proposal suggests that 15% of future Ethereal governance tokens will be allocated to ENA holders. ENA price hit a high of $0.42 and fell to $0.384 amid heavy trading volume.
The recent proposal to integrate Ethereal Exchange into the Ethena Network has caused great excitement in the cryptocurrency community, leading to notable fluctuations in the price of Ethena’s native token, ENA.
This integration aims to launch Ethereal, a decentralized exchange (DEX) with both spot and perpetual futures trading, tied directly to Ethena's reserve management and its native stablecoin USDe. I'm here.
Ethereal integration proposal
The proposal, submitted to the Ethena Governance Forum on September 29th by an anonymous author known as Fells0x, would integrate Ethereal DEX into Ethena's reserve management from launch, allowing both spot and derivative positions to support USDe. It aims to provide a complete on-chain venue for management.
According to DeFiLlama, the merger promises to increase the utility and demand for USDe, which has a strong foothold in the market as the fourth-largest stablecoin with a market capitalization of $2.5 billion.
A key aspect of this proposal is the promise to allocate 15% of future Ethereal governance tokens to ENA holders. This incentive is designed to ensure collaboration between the Ethereal team and the Ethena community.
Ethena price reaction
After the announcement, traders quickly reacted to the potential benefits outlined in the proposal, pushing ENA's price up as much as 20% to a peak of $0.42.
This excitement was reflected in trading volume, which jumped 145% in 24 hours, demonstrating increased investor interest and optimism. The futures market also saw significant gains, with ENA futures open interest increasing by more than 13% in less than four hours.
However, the volatility of the cryptocurrency market is well known and fluctuations are to be expected. At the time of writing, ENA was trading at $0.384, reflecting a significant decline from $0.42.
Despite these recent declines, ENA has shown remarkable resilience, recovering over 81.4% in two weeks.
