USDe Suffers Massive Outflows After October Liquidation

[cryptohog]

USDe’s market cap declines. Source: CoinMarketCap.

Ethena’s synthetic dollar, USDe, has lost around $8.3 billion in net outflows since the October 10 crypto market liquidation, as confidence in synthetic and leveraged collateral continues to falter. The crash erased an estimated $1.3 trillion in crypto value, marking one of the largest sell-offs in history.

USDe, which relies on synthetic collateral rather than traditional fiat reserves, saw its market cap drop from $14.7 billion on October 9 to just $6.4 billion today. While USDe briefly lost its peg to $0.65 on Binance, founder Guy Young confirmed this was due to an internal oracle issue—not the stablecoin’s protocol.

Currently trading near $0.9987, USDe shows stability, but the event highlights ongoing concerns about the fragility of leveraged crypto structures in volatile markets.