Ethereal Exchange has proposed integrating its decentralized exchange (DEX) into Ethena’s hedging engine and liquidity management system. This move sent ENA prices surging over 20%, driven by immediate trader reactions.
Ethereal Exchange Proposal for Ethena Integration
On September 20, Ethereal Exchange submitted a proposal for governance voting in the Ethena forum. The proposal seeks approval to integrate a spot and perpetual DEX into Ethena’s reserve management system, which would provide an on-chain solution for managing spot and derivative positions backing USDe, Ethena’s stablecoin.
This integration aims to expand the utility of USDe, benefiting both Ethena and ENA holders. If the proposal passes, 15% of any future Ethereal governance tokens will be allocated to ENA holders. The Ethena community is currently discussing the mutual benefits of this initiative.
The Ethereal V1 DEX, built as an L3 EVM appchain, is set to launch a testnet in Q4 2024, with the full release expected in 2025.
ENA Price Jumps 20% Following Proposal
Traders responded swiftly to this integration news, propelling ENA prices by 20% within 24 hours. Ethena Labs’ recent announcement about launching the UStb stablecoin, collateralized by BlackRock and Securitize, added further fuel to the rally.
In the last 24 hours, ENA price rose from a low of $0.3496 to a high of $0.4179, with the price currently trading at $0.411. Trading volume also increased by 145%, showing significant interest from the market.
Surge in Derivatives Activity
The derivatives market is experiencing a surge in ENA futures buying activity. Coinglass data reveals a 13% rise in open interest in just four hours, and over 20% in the past 24 hours. This growth has been seen across major exchanges like Binance, Bybit, and Coinbase, pushing total ENA futures open interest to $190 million.
