Ethena's USDe Faces $8.3 Billion Outflow as Confidence Wanes
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Dec 23 2025- Market Cap Decline: Since the major liquidation event on October 10, Ethena's USDe has experienced approximately $8.3 billion in net outflows, reflecting a significant loss of confidence in leveraged and synthetic collateral structures, with its market cap plummeting from $14.7 billion to around $6.4 billion, a nearly 57% loss.
- Market Crash Impact: The crash erased an estimated $1.3 trillion in crypto market value, nearly 30% of total capitalization at the time, marking a shift from a bull phase to a deleveraging period, which could lead to broader market instability.
- Price Depeg Incident: Following the crash, USDe temporarily lost its peg, dropping to about $0.65, although the founder stated that this was due to an internal oracle issue at the exchange rather than problems with the stablecoin's collateral or protocol, highlighting the fragile confidence in its stability.
- Trading Activity Slowdown: Post-crash, overall crypto trading volumes have decreased by approximately 50%, while US-listed Bitcoin ETFs have seen about $5 billion in net outflows since late October, indicating a deliberate pullback by regulated capital that further tightens market liquidity.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
