USDe outflows slash Ethena TVL by 50% after October 10 crash: What’s next?
Journalist
Posted:
Ethena was one of many main losers after the October market crash. The protocol’s TVL (complete locked worth), primarily pushed by its yield-bearing stablecoin USDe, decreased by half from $14.8 billion to $7.4 billion.
Over the identical interval, buyers exited USDe in droves. In October alone, $5.7 billion was redeemed from the stablecoin, and this pattern has continued for the previous two months, totalling $8 billion.
USDe was probably the most affected as a result of the October crash’s escalated liquidation was partly pushed by its momentary depegging on the Binance platform.
USDe lags behind different stablecoins
Actually, a better take a look at the yield-bearing stablecoin markets indicated that outflows have been significantly focused on the USDe.
Prior to now 90 days, as USDe confronted huge outflows, related merchandise equivalent to Sky’s sUSDS, Marple’s syrupUSDC and others attracted important inflows.
Supply: Steady Watch
ENA’s 62% dip attracts new demand
In different phrases, after the crash, most buyers fled Ethena’s USDe to different rival yield-offering stablecoins. The chance-off was obvious on the ENA, the native token for the Ethena protocol.
After the liquidation cascade, ENA misplaced $0.5 and slumped 62% to beneath $0.2 in This autumn.
Supply: ENA/USDT, TradingView
Actually, the buying and selling volumes, as tracked by OBV (On-balance quantity) dropped to document lows, underscoring muted curiosity amid bearish grip.
However the present ranges have been much like August 2024 lows and will supply a juicy discounted alternative if the market rebounds.
Curiously, Arthur Hayes, founding father of BitMEX Alternate, dumped his ETH holdings for ‘excessive beta DeFi belongings’, together with ENA.
In keeping with Lookonchain data, Hayes scooped 1.22 million ENA value $257.5K. However Hayes wasn’t alone.
Throughout the 62% decline, ENA’s provide exterior of exchanges climbed greater, in contrast to the Q1 2025 dip.
This meant there was dip shopping for as some gamers took benefit of the discounted window so as to add extra publicity to ENA.
Supply: Santiment
General, Ethena emerged as one of many casualties of the October 10 crash, triggering $8B in USDe outflows and a 62% value decline for ENA.
Whereas USDe was but to entrance a powerful restoration, ENA noticed energetic shopping for in the course of the dip.
Last Ideas
- Ethena’s USDe bled $8 billion in outflows for the reason that October 10 liquidation occasion.
- Though the bearish sentiment dragged ENA down by 62%, key gamers have been dip-buying.
