Ethena (ENA) price pumps and dumps after proposal to integrate Ethereal Exchange

• Ethereal Exchange integration proposal sparked a 20% surge in ENA price.
• The proposal suggests that 15% of future Ethereal governance tokens be allocated to ENA holders.
• ENA price has dropped to $0.384 after hitting a high of $0.42 amid high trading volume.

The recent proposal to integrate Ethereal Exchange with the Ethena Network has stirred significant 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) for both spot and perpetual futures trading, directly tied to Ethena’s reserve management and its native stablecoin, USDe.

Ethereal integration proposal

The proposal submitted on September 29 to the Ethena governance forum by an anonymous author known as Fells0x seeks to integrate the Ethereal DEX into Ethena’s reserve management from launch, providing a fully on-chain venue for managing both spot and derivative positions that back USDe.

The integration promises to enhance the utility and demand for USDe, which has gained a solid foothold in the market as the fourth-largest stablecoin, boasting a market capitalization of $2.5 billion, according to DeFiLlama.

A critical aspect of the proposal is its commitment to allocate 15% of any future Ethereal governance tokens to ENA holders. This incentive is designed to ensure alignment between the Ethereal team and the Ethena community.

Ethena price reaction

Following the announcement, traders quickly reacted to the potential benefits outlined in the proposal, pushing ENA’s price up by an impressive 20% to a peak of $0.42.

The excitement was reflected in trading volumes, which surged by 145% over 24 hours, indicating heightened interest and optimism among investors. The futures market also witnessed a significant uptick, with ENA futures open interest increasing by over 13% within four hours.

However, the volatility of cryptocurrency markets is well-known, and fluctuations are to be expected. At press time, ENA was trading at $0.384, reflecting a considerable decline from $0.42.

Despite these recent dips, ENA has shown remarkable resilience, rallying over 81.4% in the two weeks.