Ethena’s synthetic stablecoin USDe has seen its market cap cut almost in half since the Oct. 10 crash, as investors retreat from leveraged and synthetic collateral models.
Ethena’s synthetic dollar USDe has shed about $8.3 billion in net outflows since the major liquidation event on Oct. 10, as confidence in leveraged and synthetic collateral structures continues to weaken.
According to a report from 10x Research, the October sell-off marked a turning point for the crypto market, flipping the bull phase into a period of deleveraging. The crash erased an estimated $1.3 trillion in crypto market value, nearly 30% of total capitalization at the time.
Ethena USDe (USDe), which relies on synthetic collateral and hedging mechanisms rather than traditional fiat reserves, faced a “sharp loss of confidence” under these conditions, the analysts wrote.
