ChainCatcher reports, according to a 10x Research study, the market capitalization of Ethena’s synthetic stablecoin USDe has evaporated approximately $8.3 billion since the market crash, dropping from $14.7 billion to the current roughly $6.4 billion, nearly halving. This sharp decline reflects a significant loss of investor confidence in leveraged and synthetic collateral models.
The market crash was the largest liquidation event in crypto market history, resulting in over $19 billion in crypto positions being liquidated, with a total market cap loss of about $1.3 trillion, nearly 30% of the total market value at the time. During this period, USDe also briefly depegged to around $0.65, but Ethena Labs founder Guy Young stated that this temporary depegging was due to internal exchange oracle issues, not protocol or collateral asset problems. Currently, USDe has recovered to $0.9987, but market activity remains weak, with trading volume down about 50%, and U.S.-listed Bitcoin spot ETFs experiencing net outflows of approximately $5 billion since late October. Analysis indicates that this weakness is more influenced by regulatory capital withdrawals rather than retail selling.
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