Ethena’s USDe Contracts as Dollar Stablecoins Hit Supply Milestones

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Well, well, well… USDe, that oh-so-promising synthetic-dollar stablecoin from Ethena, has had a rough month. Imagine all the hype about dollar-pegged coins and then-bam-down goes the supply! 💸 While other stablecoins are rolling in billions like they’re at a Kardashian wedding, USDe is just… hanging in there, struggling to keep up. 🍿

Are USDe Users Dumping Their Stablecoin Like It’s Last Season’s Fashion?

From a solid $9.3 billion market cap on November 1 to a sad $7.1 billion on November 30-USDe has officially hit its lowest point. That’s not just a dip; that’s a plunge, folks. This token had one of its sharpest contractions EVER. The crypto world’s version of “oops, I did it again.” 💔

To add to the drama, a whopping $2.2 billion in redemptions were recorded, pushing supply down 24%. Oh, and did we mention this has been going on for MONTHS? Yep, it’s like watching a slow-motion train wreck, but without the satisfying crash. Thanks, Coingecko, for keeping us all informed on this rollercoaster ride. 🎢

Just for the record, USDe is a synthetic stablecoin created by Ethena that supposedly keeps its dollar peg by doing all sorts of magical crypto wizardry. No real dollars involved, just a bunch of crypto-futures contracts playing the role of the US dollar. But here’s the thing: If people are pulling out their USDe, that means they’re either swapping it for something flashier or retreating into the comfy arms of Decentralized Apps (DApps). A little bit of both, maybe? 🤷‍♀️

PayPal’s PYUSD: The New Kid on the Block (But Way Cooler Than USDe Right Now)

Meanwhile, over in the fiat-backed stablecoin world, USDT, USDC, and especially PayPal’s PYUSD are flexing their muscles with massive inflows. They’re swimming in the crypto ocean while USDe is stuck in a kiddie pool somewhere. 🌊

Let’s talk PYUSD for a sec. This PayPal-backed stablecoin went from $1.2 billion to a jaw-dropping $3.8 billion market cap in just a couple of months. That’s growth on steroids, my friends. And how did it do it? By offering a 3.7% yield for US users. Yup, all you need to do is hold it in your PayPal or Venmo wallet. No need to lock it up, no need for any weird crypto rituals. Just… hold it. Easy, right? 💰

PayPal’s PYUSD has grown from $1.2B market cap in September to over $3.8B today.

Track over 300 stablecoins on DefiLlama.

– DefiLlama.com (@DefiLlama) December 3, 2025

While USDe has its little redemption drama, PayPal is over here casually raking in billions and making it look easy. And don’t even get me started on the entire stablecoin market, which has a $311 billion market cap, with the majority of that, of course, being USD-backed tokens. It’s like the cool kids’ table, and USDe is the kid with the lunch tray who can’t find a seat. 😅

In September, USDe had its moment, claiming a solid 4.5% of the global stablecoin market with a $14.4 billion market cap. It was the talk of the town. But now? Now it’s more like “Remember when USDe was a thing?” 😬

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2025-12-03 17:24