USDe's $8.3B Outflow: Ethena's Synthetic Stablecoin Faces Steep Market Cap Contraction

Ethena’s USDe stablecoin has experienced significant capital withdrawal since the October 2024 market downturn, with the project’s market cap contracting dramatically over the past two months. According to the latest data from CoinMarketCap, the asset’s valuation has compressed to approximately $6.30 billion—a steep decline from its peak near $14.7 billion recorded on October 9.

The numbers tell a striking story: USDe has lost roughly half its market cap value, equivalent to an estimated $8.3 billion in net outflows. This represents one of the notable devaluations among synthetic stablecoin offerings since the market turbulence triggered by the “1011 crash.”

For context, the dramatic shift underscores the volatility risks inherent in synthetic stablecoin models, particularly when broader market conditions deteriorate. While USDe maintains its position as a notable player in the stablecoin ecosystem, the sharp capital exodus reflects investor concerns about the mechanism’s resilience during market stress periods.

The current market cap of $6.30 billion positions USDe at a critical juncture, with investors closely monitoring whether the stablecoin can stabilize its user base or if further redemptions will continue. This development serves as a reminder of the competitive pressures and risk factors that shape the synthetic stablecoin landscape.