The market cap of Ethena's USDe token has fallen from $3.6 billion to below $2.7 billion as demand has weakened. The token's price has remained stable around $1, despite concerns of a downward spiral. The protocol has experienced nearly $1 billion in outflows since July, a 27% decrease in supply. The decline is attributed to funding rates for crypto perpetual futures falling to near-zero, making it less attractive to hold and stake USDe. Skeptics have compared Ethena's model to the imploded stablecoin project Terra-Luna. However, Ethena has responded well to market corrections and stress tests, and its reserve fund currently stands at $45 million, around 1.6% of the current market capitalization.



Other News from Today