Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
Ethena’s synthetic USDe contracts sharply as dollar-backed stablecoins expand

Ethena’s synthetic USDe contracts sharply as dollar-backed stablecoins expand

CryptoNewsNetCryptoNewsNet2025/12/03 11:27
By:cointelegraph.com

Ethena’s synthetic-dollar stablecoin USDe saw one of its sharpest monthly contractions yet, while fiat-backed stablecoins including USDT, USDC and PYUSD attracted billions in inflows.

CoinGecko data showed that Ethena’s USDe stablecoin fell from a market capitalization of $9.3 billion on Nov. 1 to $7.1 billion on Nov. 30. The token saw about $2.2 billion in redemptions, marking a 24% decline in supply in November.

Ethena’s USDe is a synthetic stablecoin that maintains its dollar peg through trading strategies with crypto and futures contracts rather than holding actual dollars. USDe outflows mean that users are either selling USDe on the open market, withdrawing from pools or unwinding their positions on decentralized applications (DApps).

At the time of writing, CoinGecko data shows that the overall stablecoin market cap is at $311 billion. The market remains dominated by US dollar stablecoins, capturing $303 billion of the sector’s total valuation.

Ethena’s synthetic USDe contracts sharply as dollar-backed stablecoins expand image 0
Ethena USDe stablecoin’s 30-day market capitalization chart. Source: CoinGecko

USDe outflows follow October depeg

USDe’s November contraction comes weeks after the synthetic stablecoin suffered a depegging event on the crypto exchange Binance. At the time, USDe briefly plunged to $0.65 on the exchange.

Ethena founder Guy Young said that the drop was caused by a Binance-specific oracle issue and not a problem with USDe’s underlying collateral mechanism that backs the asset.

Young said that the USDe token’s minting and redemption functions operated “perfectly” during the incident, with about 2 billion tokens redeemed across decentralized finance (DeFi) platforms.

On Oct. 9, USDe market cap hovered at $14.8 billion, making it the third-largest stablecoin at the time. Since then, it has lost over 53% of its market capitalization.

At the time of writing, CoinGecko data shows that USDe has a total valuation of $6.9 billion, dropping it to the fourth spot in the stablecoin market cap rankings.

Related: Lawmakers stumble on stablecoin terms as US Congress grills Fed’s Bowman

Fiat-backed stablecoins increased by $3.2 billion in November

While the synthetic-dollar stablecoin struggled during the month, fiat-backed stablecoins recorded modest but steady gains over the same time period.

Tether’s USDt (USDT) saw a $1.3 billion increase to $184.6 billion, while Circle’s USDC (USDC) climbed to $76.5 billion, adding roughly $600 million to its supply.

PayPal USD (PYUSD) posted the strongest growth among the major dollar-pegged stablecoins, jumping from $2.8 billion to $3.8 billion in November. This marks 1 billion inflow for the month, a 35% month-on-month growth.

DefiLlama data showed that the PayPal PYUSD stablecoin expanded by over 216% since September, when it had a market cap of $1.2 billion. This represents a $2.6 billion increase in just three months.

Ethena’s synthetic USDe contracts sharply as dollar-backed stablecoins expand image 1
Source: DefiLlama

Ripple’s (RLUSD) stablecoin, which breached a market capitalization of $1 billion for the first time in November, continued its growth throughout the month.

According to CoinGecko, RLUSD went from a $960 million market cap on Nov. 1 to a market cap of $1.26 billion on Nov. 30, marking a $300 million increase.

Magazine: China officially hates stablecoins, DBS trades Bitcoin options: Asia Express

0
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

AI-Powered Token Fluctuations: Insights Gained from the ChainOpera AI Token Downturn

- ChainOpera AI's COAI token collapsed 90% in late 2025 due to hyper-centralized supply, governance flaws, and regulatory ambiguity. - The crash triggered market instability, exposing vulnerabilities in AI-driven crypto ecosystems reliant on speculative hype rather than intrinsic value. - Anthropological insights and interdisciplinary models like CAVM are proposed to improve governance and valuation frameworks for decentralized AI projects. - Structural safeguards including diversified token supply, hybrid

Bitget-RWA2025/12/10 14:50
AI-Powered Token Fluctuations: Insights Gained from the ChainOpera AI Token Downturn

MMT Token's Latest Price Jump: Temporary Hype or Genuine Breakthrough?

- MMT token surged 1,330% post-Binance listing in late 2025 but fell 37.37% over 30 days amid crypto market weakness. - Market analysis highlights oversold RSI-7 (19.23) and weak buying interest, while Bitcoin dominance rose to 58.13%. - MMT launched buybacks and a perpetual futures DEX to stabilize value, but top 100 holders control 20.4% of circulating supply. - Experts note speculative GME-like retail frenzy alongside DeFi utility, predicting 2025 price range of $0.4342-$0.8212.

Bitget-RWA2025/12/10 14:08
MMT Token's Latest Price Jump: Temporary Hype or Genuine Breakthrough?
© 2025 Bitget