{"id":91421,"date":"2025-11-26T11:19:54","date_gmt":"2025-11-26T08:19:54","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=91421"},"modified":"2025-11-26T11:20:26","modified_gmt":"2025-11-26T08:20:26","slug":"usde-stablecoins-market-cap-halved-due-to-yield-decline","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/usde-stablecoins-market-cap-halved-due-to-yield-decline\/","title":{"rendered":"USDe Stablecoin&#8217;s Market Cap Halved Due to Yield Decline"},"content":{"rendered":"<p>The market value of the synthetic <a href=\"https:\/\/forklog.com\/en\/news\/what-are-stablecoins\">&#8220;stablecoin&#8221;<\/a> USDe from the Ethena project plummeted by 50% in a month\u2014from $14.8 billion in October to the current $7.2 billion.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"450\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/img-f5e1698a0605d879-10537810587026391-1024x450.png\" alt=\"image\" class=\"wp-image-270498\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/img-f5e1698a0605d879-10537810587026391-1024x450.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/img-f5e1698a0605d879-10537810587026391-300x132.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/img-f5e1698a0605d879-10537810587026391-768x337.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/img-f5e1698a0605d879-10537810587026391-1536x675.png 1536w, https:\/\/forklog.com\/wp-content\/uploads\/img-f5e1698a0605d879-10537810587026391.png 1594w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Source: <a href=\"https:\/\/defillama.com\/stablecoin\/ethena-usde\">DefiLlama<\/a>.<\/figcaption><\/figure>\n<p>Meanwhile, the actual usage of the coin continues to grow, with on-chain transactions reaching $50 billion over the past month. USDe remains among the top three largest stablecoins.<\/p>\n<p>The decline in the coin&#8217;s market cap occurred amid a drop in yield to 5.1% annually, compared to double-digit figures at the start of the year.<\/p>\n<p>According to analysts from <a href=\"https:\/\/www.theblock.co\/post\/380210\/yield-compression-triggers-50-tvl-drop-in-usde-despite-rising-onchain-usage\">The Block<\/a>, the main reason is the closure of leveraged strategies in <a href=\"https:\/\/forklog.com\/en\/news\/what-is-decentralised-finance-defi\">DeFi<\/a> protocols like <a href=\"https:\/\/forklog.com\/en\/news\/what-is-aave\">Aave<\/a>. Their mechanics included:<\/p>\n<ul class=\"wp-block-list\">\n<li>repeatedly depositing USDe for <a href=\"https:\/\/forklog.com\/en\/news\/what-is-staking-and-how-to-make-money-from-it\">staking<\/a>\u2014sUSDe\u2014as collateral;<\/li>\n<li>borrowing <a href=\"https:\/\/forklog.com\/en\/news\/what-is-the-usdc-stablecoin\">USDC<\/a> at maximum <span data-descr=\"Loan-to-Value \u2014 shows the ratio of the loan amount to the value of the cryptocurrency used as collateral\" class=\"old_tooltip\">LTV<\/span> ratios;<\/li>\n<li>converting funds back into sUSDe to repeat the cycle;<\/li>\n<li>achieving leverage of 10x and more.<\/li>\n<\/ul>\n<p>The strategy remained profitable as long as USDe&#8217;s yield exceeded the cost of borrowing USDC. However, when it fell below 5.4% (the current borrowing rate for Circle&#8217;s stablecoin on Aave), there was a mass exit from positions.<\/p>\n<p>The situation is exacerbated by systemic risks in DeFi: several protocols have faced questions about the sustainability of stablecoin farming pools, leading to the closure of such programs.<\/p>\n<p>The dynamics clearly demonstrated the vulnerability of yield-bearing stablecoins to rapid capital outflows\u2014the same mechanisms that drove <span data-descr=\"total value locked\" class=\"old_tooltip\">TVL<\/span> growth in an uptrend accelerate fund outflows during a correction phase.<\/p>\n<h2 class=\"wp-block-heading\">Downtrend<\/h2>\n<p>The TVL of lending protocols has significantly decreased\u2014from a historic high of $90 billion in October to $63 billion at the time of writing.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"397\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/img-78a3c41aee9f6cbe-10537849110177244-1024x397.png\" alt=\"image\" class=\"wp-image-270499\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/img-78a3c41aee9f6cbe-10537849110177244-1024x397.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/img-78a3c41aee9f6cbe-10537849110177244-300x116.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/img-78a3c41aee9f6cbe-10537849110177244-768x297.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/img-78a3c41aee9f6cbe-10537849110177244-1536x595.png 1536w, https:\/\/forklog.com\/wp-content\/uploads\/img-78a3c41aee9f6cbe-10537849110177244.png 1606w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Source: <a href=\"https:\/\/defillama.com\/protocols\/lending\">DefiLlama<\/a>.<\/figcaption><\/figure>\n<p>Nearly half of the segment is accounted for by Aave\u2014$31.7 billion. At the beginning of last month, the figure was $44.5 billion. The total volume of loans on the platform is estimated at $20 billion, with an average annual yield of about 1.1%.<\/p>\n<p>The top three in terms of total value locked also include Morpho ($5.9 billion) and SparkLend ($4 billion).<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"468\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/img-d99f5f4410b96ffb-10537862765235672-1024x468.png\" alt=\"image\" class=\"wp-image-270500\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/img-d99f5f4410b96ffb-10537862765235672-1024x468.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/img-d99f5f4410b96ffb-10537862765235672-300x137.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/img-d99f5f4410b96ffb-10537862765235672-768x351.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/img-d99f5f4410b96ffb-10537862765235672-1536x702.png 1536w, https:\/\/forklog.com\/wp-content\/uploads\/img-d99f5f4410b96ffb-10537862765235672.png 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Source: <a href=\"https:\/\/defillama.com\/protocols\/lending\">DefiLlama<\/a>.<\/figcaption><\/figure>\n<p>The combined volume of loans issued on these platforms is $8.9 billion and $5.7 billion, respectively.<\/p>\n<p>Back in the third quarter, crypto-backed lending <a href=\"https:\/\/forklog.com\/en\/news\/crypto-lending-hits-a-record-73-6bn\">reached<\/a> $73.6 billion, surpassing the previous record from 2021.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The market value of the synthetic &#8220;stablecoin&#8221; USDe from the Ethena project plummeted by 50% in a month\u2014from $14.8 billion in October to the current $7.2 billion.<\/p>\n","protected":false},"author":1,"featured_media":91422,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"USDe's market cap fell 50% due to yield drop.","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1212,1093,1500,1097,807],"class_list":["post-91421","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-aave","tag-defi","tag-ethena","tag-lending","tag-stablecoins"],"aioseo_notices":[],"amp_enabled":true,"views":"160","promo_type":"1","layout_type":"1","short_excerpt":"USDe's market cap fell 50% due to yield drop.","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/91421","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=91421"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/91421\/revisions"}],"predecessor-version":[{"id":91423,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/91421\/revisions\/91423"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/91422"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=91421"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=91421"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=91421"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}