{"id":92602,"date":"2025-12-24T15:20:03","date_gmt":"2025-12-24T12:20:03","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=92602"},"modified":"2025-12-24T15:25:17","modified_gmt":"2025-12-24T12:25:17","slug":"usde-capitalisation-by-ethena-plummets-by-8-3-billion-since-october","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/usde-capitalisation-by-ethena-plummets-by-8-3-billion-since-october\/","title":{"rendered":"USDe Capitalisation by Ethena Plummets by $8.3 Billion Since October"},"content":{"rendered":"<p>Following <a href=\"https:\/\/forklog.com\/en\/news\/black-saturday-11-october-what-happened\">&#8220;Black Saturday,&#8221;<\/a> the supply volume of the synthetic dollar USDe from <a href=\"https:\/\/forklog.com\/en\/news\/delta%e2%80%91neutral-synthetic-dollars-why-the-usde-stablecoin-matters\">Ethena<\/a> has decreased by more than $8 billion.<\/p>\n<p>As of October 9, the supply volume of the <a href=\"https:\/\/forklog.com\/en\/news\/what-are-stablecoins\">stablecoin<\/a> was estimated at approximately $14.7 billion. Over two months, this figure has fallen to $6.3 billion.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"497\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/img-1f4d5f5d2fbcc6bd-1793930066032982-1024x497.png\" alt=\"Ethena_USDe\" class=\"wp-image-272468\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/img-1f4d5f5d2fbcc6bd-1793930066032982-1024x497.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/img-1f4d5f5d2fbcc6bd-1793930066032982-300x146.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/img-1f4d5f5d2fbcc6bd-1793930066032982-768x373.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/img-1f4d5f5d2fbcc6bd-1793930066032982.png 1302w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">USDe capitalisation dynamics by Ethena. Source: <a href=\"https:\/\/www.coingecko.com\/en\/coins\/ethena-usde\">CoinGecko<\/a>.\u00a0<\/figcaption><\/figure>\n<p>The chart below illustrates the significant predominance of redemptions over the issuance of USDe in recent months:<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/img-03bbe636c8481f9b-1794014242399579.webp\" alt=\"Redemption\" class=\"wp-image-272469\"\/><figcaption class=\"wp-element-caption\">Issuance and redemption dynamics of USDe by Ethena. Source: <a href=\"https:\/\/dune.com\/entropy_advisors\/ethena-usde\">Dune\/entropy_advisors<\/a>.<\/figcaption><\/figure>\n<p>The asset ranks 27th in market capitalisation, standing <a href=\"https:\/\/www.coingecko.com\/en\/categories\/stablecoins\">fourth<\/a> among the largest &#8220;stablecoins.&#8221;<\/p>\n<p>The annual yield of USDe is far from its previous levels\u2014<a href=\"https:\/\/ethena.fi\/\">only 4.3%<\/a>.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"411\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/img-b86d904cca57dcb2-1794885822907911-1024x411.png\" alt=\"APY\" class=\"wp-image-272473\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/img-b86d904cca57dcb2-1794885822907911-1024x411.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/img-b86d904cca57dcb2-1794885822907911-300x120.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/img-b86d904cca57dcb2-1794885822907911-768x308.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/img-b86d904cca57dcb2-1794885822907911-1536x617.png 1536w, https:\/\/forklog.com\/wp-content\/uploads\/img-b86d904cca57dcb2-1794885822907911-2048x822.png 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">In early March 2024, the annualised yield of USDe exceeded 50%. Source: <a href=\"https:\/\/defillama.com\/yields\/pool\/66985a81-9c51-46ca-9977-42b4fe7bc6df\" title=\"DefiLlama\">DefiLlama<\/a>. <\/figcaption><\/figure>\n<h2 class=\"wp-block-heading\">Echoes of &#8220;Black Saturday&#8221;<\/h2>\n<p>In an analytical report by 10x Research, the October crash was described as a turning point: the bull phase was replaced by a sudden <a href=\"https:\/\/forklog.com\/en\/news\/whales-adl-and-the-end-of-the-bull-what-really-happened-on-cryptos-black-saturday-2\">deleveraging<\/a>. The sharp correction &#8220;erased&#8221; about 30% ($1.3 trillion) from the total capitalisation of the cryptocurrency market.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">After Crypto\u2019s October 10 Crash: Are We Entering the Final Stage of Deleveraging?<\/p>\n<p>October proved to be the most consequential month for Bitcoin in 2025, marking the point at which the bull market decisively turned bearish amid a convergence of overlapping shocks. <\/p>\n<p>Understanding\u2026 <a href=\"https:\/\/t.co\/W6iAKdCAA3\">pic.twitter.com\/W6iAKdCAA3<\/a><\/p>\n<p>\u2014 10x Research (@10x_Research) <a href=\"https:\/\/twitter.com\/10x_Research\/status\/2003428010276585482?ref_src=twsrc%5Etfw\">December 23, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;In this case, the fragile interaction between Binance, Ethena, and <a href=\"https:\/\/forklog.com\/en\/news\/the-price-of-popularity-and-a-lesson-for-all-hyperliquid\">Hyperliquid<\/a> was disrupted on October 10. This broke the momentum, and unlike previous pullbacks, the market could not recover,&#8221; noted 10x Research.<\/p>\n<\/blockquote>\n<p>According to analysts, after the crash, the total trading volume of crypto assets fell by approximately 50%. This is a &#8220;clear signal&#8221; that many traders and <a href=\"https:\/\/forklog.com\/en\/news\/what-is-a-market-maker\">market makers<\/a> have taken a wait-and-see approach.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;Collectively, these factors indicate a gradual reduction in risk exposure by US institutional investors,&#8221; experts added.<\/p>\n<\/blockquote>\n<p>Overall, the company is convinced that the current stagnation is not due to speculators capitulating, but rather &#8220;a deliberate reduction of positions by regulated capital.&#8221;<\/p>\n<p>Earlier, analysts at The Block <a href=\"https:\/\/forklog.com\/en\/news\/usde-stablecoins-market-cap-halved-due-to-yield-decline\">linked<\/a> the decline in demand for USDe to the closure of leveraged strategies in DeFi protocols like <a href=\"https:\/\/forklog.com\/en\/news\/what-is-aave\">Aave<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Following &#8220;Black Saturday,&#8221; the supply volume of the synthetic dollar USDe from Ethena has decreased by more than $8 billion.<\/p>\n","protected":false},"author":1,"featured_media":92603,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"USDe supply by Ethena drops over $8 billion post-October.","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1500,1145,807],"class_list":["post-92602","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-ethena","tag-market-analysis","tag-stablecoins"],"aioseo_notices":[],"amp_enabled":true,"views":"136","promo_type":"1","layout_type":"1","short_excerpt":"USDe supply by Ethena drops over $8 billion post-October.","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/92602","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=92602"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/92602\/revisions"}],"predecessor-version":[{"id":92604,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/92602\/revisions\/92604"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/92603"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=92602"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=92602"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=92602"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}