TLDR
- Ethena’s USDe stablecoin dropped from $9.3 billion to $7.1 billion in November.
- The stablecoin saw a 24% decline in supply during the month.
- USDe fell to fourth place in the stablecoin rankings after the contraction.
- A depegging event on Binance pushed USDe down to $0.65 before recovery.
- Ethena’s founder confirmed the issue was caused by a Binance-specific oracle glitch.
Ethena’s synthetic-dollar stablecoin USDe recorded one of its steepest supply drops in November. During the same period, fiat-backed competitors such as USDT, USDC, and PYUSD gained billions in new inflows. The decline in USDe follows a sharp depegging and aggressive redemptions across DeFi platforms.
USDe Supply Drops Following Market Pressure
USDe’s market cap dropped from $9.3 billion on November 1 to $7.1 billion by November 30.
This represents a $2.2 billion contraction, which equals a 24% drop in circulating supply.
CoinGecko data confirmed this was one of the sharpest monthly declines for the synthetic-dollar stablecoin.
The token previously held the third spot in stablecoin rankings in early October with $14.8 billion in market cap.
It has since lost over 53% of its valuation, now standing at $6.9 billion.
This decline moved USDe to fourth place among stablecoins by market cap.
Ethena founder Guy Young addressed the fall following a price dip to $0.65 on Binance.
He stated, “A Binance-specific oracle issue triggered the depegging, not a flaw in the USDe model.”
He added that minting and redemption “functioned perfectly,” with $2 billion redeemed across DeFi.
USDe uses crypto and futures positions instead of fiat to maintain its dollar peg.
Therefore, outflows typically reflect redemptions, withdrawals from liquidity pools, or position closures on decentralized platforms.
Despite efforts to stabilize, USDe ended November far below its October highs.
USDT Adds Over $1 Billion to Supply
Tether’s USDT increased its market cap by $1.3 billion in November, reaching $184.6 billion.
The growth came during a month of general stablecoin inflows and USDe weakness.
This helped USDT maintain its position as the market’s largest stablecoin.
US dollar stablecoins currently dominate the market with $303 billion of the total $311 billion valuation. Fiat-backed coins continued to receive inflows throughout the month. USDT remained the largest contributor to that increase.
PYUSD Sees Fastest Month-on-Month Growth
PayPal’s PYUSD gained $1 billion in November, rising from $2.8 billion to $3.8 billion. This marks a 35% monthly increase, the fastest among major dollar-pegged stablecoins. DefiLlama data confirmed the rapid pace of growth since its earlier $1.2 billion valuation in September.
Over three months, PYUSD’s market cap has risen by $2.6 billion, representing over 216% growth. The token continued expanding during the same period USDe contracted.
This trend highlighted diverging investor behavior between synthetic and fiat-backed options.
USDC and RLUSD Also Expand Steadily
Circle’s USDC grew by $600 million in November, climbing to a $76.5 billion market cap.
USDC remains the second-largest dollar-backed stablecoin in the ecosystem.
Its growth came during a period of increased trust in fiat-backed assets.
Ripple’s RLUSD surpassed $1 billion in market cap for the first time during November.
It rose from $960 million to $1.26 billion by the end of the month.
This $300 million gain kept its expansion trajectory intact throughout the period.
USDe’s market cap at the time of writing remains $6.9 billion.
Despite early-quarter gains, it has lost over $7.9 billion since October.
CoinGecko data continues to show US dollar-backed stablecoins increasing in strength.
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