Ethena (ENA) Price Pumps and Dumps After Proposal to Merge Ethereum Exchange
The proposed Ethereum exchange merger resulted in a 20 percent increase in ENE prices. The proposal suggests that 15% of future Ethereal Management Tokens be allocated to ESA holders. The price of ENA dropped to $0.384 after hitting $0.42 in heavy trading volume.
A recent proposal to integrate the Ethereum exchange with the Etena network sparked a lot of excitement in the cryptocurrency community, which led to a significant change in Etena's native token, ENA.
This integration is Ethereal, a decentralized exchange (DEX) for both spot and perpetual futures trading, directly tied to Athena Reserve Management and its native stablecoin USDe.
Etheryl synthesis proposal
A proposal submitted to the Etena Management Forum on September 29 by an anonymous author known as Fells0x to integrate the Ethereal DEX with Etena Reserve Management would provide a fully on-chain platform to manage USDe-backed slots and derivatives from the start.
The merger promises to increase the service and demand of USDe, which has gained a strong position in the market as the fourth largest stable coin in the market, with a capitalization of 2.5 billion dollars, according to DeFillama.
A key aspect of the proposal is the commitment to allocate 15% of future Ethereum management tokens to ESA holders. This incentive is designed to ensure compatibility between the Ethereal team and the Etena community.
Etena's price response
Following the announcement, traders quickly reacted to the potential benefits outlined in the proposal, sending ESA's price up a staggering 20 percent to $0.42.
It reflected a 145% higher trading volume in 24 hours, reflecting the interest and optimism among investors. The futures market showed significant improvement, with ESA futures open interest rising more than 13 percent in four hours.
However, the volatility of cryptocurrency markets is well known, and volatility is expected. At press time, ESA was trading at $0.384, down from $0.42.
Despite these recent gains, ESA has shown remarkable resilience, rising over 81.4% in 2 weeks.
