ENA rises 10% after Ethena Foundation ecosystem update

The price of ENA, the token of the Ethena protocol, is up more than 10% in 24 hours after the Ethena Foundation announced four ecosystem changes on Thursday. Two notable measures are a proposed buyback programme of ENA tokens funded from protocol revenues, and the completed buyout of locked tokens from early investors. At the time of writing, ENA is trading at $0.1653, after peaking at nearly $0.19 earlier in the day.

In short:

• ENA is up more than 10% in 24 hours following announcements from the Ethena Foundation
• The Foundation proposes a buyback programme funded from protocol revenues
• Early seed investors have been fully bought out and their locked tokens have been acquired

Four changes in the Ethena ecosystem

The Ethena Foundation announced four ecosystem changes on Thursday. The most notable of these is a proposal to buy back ENA tokens from the market using protocol revenues. Such a buyback programme reduces the circulating supply and can put upward pressure on the price, although the proposal has not yet been definitively implemented.

In addition, the Foundation announced that the buyout of locked tokens from early seed investors has been completed. Early investors who wanted to sell their ENA have therefore been fully bought out, which may remove selling pressure from those parties in the future.

Price shoots up but pulls back afterwards

The market responded positively to the news. On the hourly Binance chart, ENA rose from a low of around $138 to nearly $0.19, an increase of more than 37% from the recent low point. After that peak, the price pulled back to the current level of $0.1653, a decline of 2.76% in the most recent hour.

Trading volume rose sharply in recent hours, indicating that the price movement is broadly supported by market participants. Whether the pullback is temporary or signals a correction after the rapid rise depends in part on the further implementation of the announced measures, particularly the buyback proposal.