Ethena’s USDe Sees $8B Redemptions; ENA Falls 62% as Dip Buyers Appear
Ethena’s yield-bearing stablecoin USDe recorded roughly $8 billion in redemptions over two months following the October 2025 market crash, cutting protocol TVL from about $14.8 billion to $7.4 billion. The largest wave occurred in October when $5.7 billion exited after a temporary USDe depeg on Binance amplified liquidations. Competing yield stablecoins such as Sky’s sUSDS and Maple’s syrupUSDC captured inflows as investors reallocated. Ethena’s native token ENA plunged about 62% to below $0.20, revisiting prior lows; on‑chain metrics show reduced ENA supply on exchanges and increased holdings off‑exchange, suggesting some dip buying (reports indicate Arthur Hayes bought ~1.22M ENA). Ethena has said it will improve hedging mechanisms after the depeg. For traders: monitor USDe redemption trends and peg stability, protocol TVL recovery, ENA exchange supply and off‑exchange accumulation, and capital flows into competing yield stablecoins — these indicators will signal whether investor confidence is returning or risk aversion persists. Short term, continued redemptions and weak sentiment raise the risk of further ENA downside and elevated volatility; longer-term recovery is possible if redemptions slow and the peg is restored.
Bearish
The news points to clear downside pressure on ENA driven by mass USDe redemptions that halved protocol TVL and a depeg event that triggered liquidations. Short term, continued redemptions, weak sentiment and elevated volatility increase the likelihood of further ENA price declines. On‑chain signs of accumulation and reduced exchange supply indicate some dip buying, which can provide intermittent support and lower immediate downside magnitude, but are not sufficient to reverse trend while outflows continue. Longer term recovery is possible if Ethena stabilizes USDe’s peg, halts redemptions and restores hedging, which would rebuild confidence and reduce sell pressure. For traders, the most relevant indicators are USDe redemption velocity, peg stability, TVL trends, ENA exchange supply vs off‑exchange holdings, and inflows to competing yield stablecoins — movement in these metrics will determine whether the market remains in a protracted risk‑off phase or begins to recover.