Ethena’s derivative-based stablecoin sees steep November redemptions while traditional fiat-backed competitors add billions
Ethena’s synthetic stablecoin USDe recorded one of its sharpest monthly contractions to date, underscoring a widening divide between derivative-backed and fiat-backed stablecoins. Market data shows that USDe’s supply dropped 24% in November, falling from $9.3 billion to $7.1 billion, as users redeemed roughly $2.2 billion of the asset.
USDe maintains its peg through a mix of crypto collateral and futures positions rather than holding cash reserves. According to market analysts, heavy outflows typically indicate that users are unwinding positions on decentralized applications, withdrawing liquidity, or selling the asset on open markets.
The broader stablecoin sector, now valued at $311 billion, remains overwhelmingly dominated by traditional U.S. dollar–backed assets, which together account for $303 billion of the market.
USDe Slide Follows October Depeg
November’s contraction comes soon after USDe experienced a sharp depeg to $0.65 on Binance, driven by what Ethena described as an exchange-specific oracle malfunction.
Even so, USDe’s footprint has narrowed significantly. After reaching $14.8 billion in early October and becoming the third-largest stablecoin, the asset has since lost more than 53% of its market value, dropping to fourth in the rankings.
Dollar-Backed Stablecoins Add $3.2B
While USDe contracted, the top fiat-backed stablecoins saw strong inflows. USDT added $1.3 billion to reach $184.6 billion, and USDC grew by about $600 million, rising to $76.5 billion.
PYUSD posted the strongest monthly expansion, climbing from $2.8 billion to $3.8 billion, a 35% increase. Sector researchers note that “PYUSD’s rapid growth reflects accelerating institutional and retail adoption of regulated dollar-backed assets.”
Ripple’s RLUSD also strengthened, rising from $960 million to $1.26 billion, marking a $300 million increase as it crossed the $1 billion milestone for the first time.
The month’s movements reinforce an emerging pattern: synthetic models remain sensitive to market stress, while fiat-backed stablecoins continue to accumulate capital amid growing demand for predictable, reserve-based structures.
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