The governance token ENA, from synthetic dollar provider Ethena, has surged by nearly 60% over the past week, thanks to positive protocol updates. This significant rise in value has investors buzzing with excitement.
Protocol Updates Boost ENA’s Value
According to CoinGecko, the price of ENA rose from 28.5 cents on October 9 to 45.6 cents by early Tuesday. During this period, ENA outperformed major cryptocurrencies like Bitcoin (BTC) and Solana (SOL).
One of the major developments driving this surge is a proposal from governance members to add SOL as a supporting asset for USDe, Ethena’s synthetic dollar. Additionally, Ethena Labs announced plans to invest approximately $46 million in reserve funds into four real-world assets: BlackRock’s BUIDL, Sky’s USDS, Mountain’s USDM, and Superstate’s USTB.
Changes in Token Trading
Data from Nansen reveals that the total number of ENA tokens across all exchanges, including Binance, increased from approximately 606 million on October 8 to 653 million at press time. This indicates a significant rise in ENA trading activity. In fact, Binance saw a $16.3 million increase in ENA tokens over the past week, while Uniswap reported a decline of over $1 million.
According to DefiLlama, Ethena is now the 10th largest protocol in the DeFi ecosystem, with a total value locked (TVL) of $2.43 billion.
ENA token holders play a key role in Ethena’s governance process, enabling them to delegate critical decision-making to expert stakeholders while maintaining transparency in the ecosystem.
As Dey There notes, these recent governance updates and strategic investments further solidify Ethena’s position within the ecosystem. The rapid rise of the ENA token reflects growing optimism among users and investors about the future of the protocol.
ENA, Ethena, Bitcoin, Solana, Binance
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