Ethena’s synthetic USDe contracts sharply as dollar-backed stablecoins expand
Ethena's synthetic stablecoin USDe sharply contracted by 24% in November, while fiat-backed stablecoins saw significant inflows.Summary
Ethena’s synthetic dollar stablecoin, USDe, experienced one of its sharpest monthly contractions, falling from a $9.3 billion market cap to $7.1 billion in November, representing a 24% supply decline due to redemptions. This synthetic stablecoin maintains its peg through trading strategies rather than holding fiat reserves. The contraction followed a recent depegging incident on Binance, which the founder attributed to an oracle issue. Conversely, traditional fiat-backed stablecoins saw growth: Tether's USDT increased by $1.3 billion, USDC added $600 million, and PayPal USD (PYUSD) posted the strongest growth, jumping 35% to $3.8 billion. Overall, the stablecoin market cap remains dominated by dollar-backed tokens at $303 billion out of a total of $311 billion.
(Source：Cointelegraph)