Ethena’s ENA Draws Dip Buyers After 62% Drop and USDe Outflows

• USDe redemptions surged to $5.7 billion in October alone, continuing into November and December.

• While USDe saw heavy outflows, competitors like Sky’s sUSDS and Maple’s syrupUSDC attracted inflows in the past 90 days.

• ENA token dropped 62% to below $0.2, but exchange supply decreased, indicating dip buying by investors including Arthur Hayes.

Discover how Ethena’s USDe outflows impacted TVL and ENA price post-October 2025 crash. Explore recovery signs amid stablecoin shifts—stay informed on DeFi trends today.

What Caused the Ethena USDe Outflows After the October 2025 Crash?

Ethena USDe outflows were triggered by the intense market liquidation during the October 2025 crash, where the stablecoin temporarily depegged on the Binance platform, eroding investor confidence. The protocol’s total value locked (TVL) plummeted from $14.8 billion to $7.4 billion as redemptions accelerated. Over two months, $8 billion was withdrawn from USDe, with $5.7 billion exiting in October alone, reflecting a broader risk-off sentiment in yield-bearing stablecoins.

Ethena was one of the major losers after the October market crash. The protocol’s TVL (total locked value), primarily driven by its yield-bearing stablecoin USDe, decreased by half from $14.8 billion to $7.4 billion. 

Over the same period, investors exited USDe in droves. In October alone, $5.7 billion was redeemed from the stablecoin, and this trend has continued for the past two months, totalling $8 billion.  

Source: Dune

USDe was the most affected because the October crash’s escalated liquidation was partly driven by its temporary depegging on the Binance platform. 

This event highlighted vulnerabilities in synthetic dollar protocols during volatile periods, as noted in analyses from on-chain data platforms. The depegging led to a cascade of liquidations, prompting users to redeem USDe en masse to mitigate potential losses. Ethena’s team has since emphasized improvements to hedging mechanisms to prevent future occurrences, drawing on lessons from similar incidents in DeFi history.

How Did USDe Compare to Other Yield-Bearing Stablecoins in Recent Months?

USDe lagged significantly behind competitors like Sky’s sUSDS and Maple’s syrupUSDC, which saw substantial inflows while Ethena faced outflows. In the past 90 days, data from stablecoin monitoring tools showed USDe’s market share eroding as investors shifted to alternatives offering comparable yields with perceived lower risks. For instance, sUSDS inflows reached over $2 billion, underscoring a diversification trend in the sector.

In fact, a closer look at the yield-bearing stablecoin markets indicated that outflows have been particularly concentrated on the USDe. 

In the past 90 days, as USDe faced massive outflows, similar products such as Sky’s sUSDS, Marple’s syrupUSDC and others attracted significant inflows. 

Source: Stable Watch

Experts from DeFi research firms point out that this shift reflects maturing user preferences toward protocols with robust backing assets and transparent risk management. Ethena’s USDe, backed by delta-neutral strategies involving staked ETH and futures, faced scrutiny over its exposure to perpetual funding rates during the crash. In contrast, inflows to sUSDS were bolstered by its integration with real-world asset yields, providing a more stable yield profile according to on-chain metrics.

Furthermore, the broader stablecoin market demonstrated resilience, with total yield-bearing TVL holding steady at around $25 billion. This concentration of outflows in USDe alone—amounting to over 30% of its peak supply—signals a pivotal moment for Ethena to rebuild trust. Regulatory discussions around stablecoin stability, as covered by financial outlets, have amplified these concerns, pushing protocols to enhance compliance and transparency measures.

Frequently Asked Questions

What Were the Key Factors Behind the $8 Billion USDe Outflows in Late 2025?

The $8 billion USDe outflows stemmed primarily from the October 2025 market crash, where temporary depegging on Binance triggered liquidations worth billions. Investors redeemed to avoid losses amid heightened volatility, with on-chain data from Dune confirming $5.7 billion exited in October, extending into subsequent months as confidence waned in yield strategies during downturns.

Is ENA’s Price Decline After the Crash a Buying Opportunity for Investors?

ENA’s 62% drop to below $0.2 following the crash mirrors past lows from August 2024, potentially signaling a discount if markets recover. On-chain indicators from Santiment show reduced exchange supply, suggesting accumulation by long-term holders, though investors should assess DeFi risks carefully before entering positions.

In other words, after the crash, most investors fled Ethena’s USDe to other rival yield-offering stablecoins. The risk-off was apparent on the ENA, the native token for the Ethena protocol. 

After the liquidation cascade, ENA lost $0.5 and slumped 62% to below $0.2 in Q4. 

Source: ENA/USDT, TradingView

In fact, the trading volumes, as tracked by OBV (On-balance volume) dropped to record lows, underscoring muted interest amid bearish grip. 

But the current levels were similar to August 2024 lows and could offer a juicy discounted opportunity if the market rebounds.

Interestingly, Arthur Hayes, founder of BitMEX Exchange, dumped his ETH holdings for ‘high beta DeFi assets’, including ENA. 

According to Lookonchain data, Hayes scooped 1.22 million ENA worth $257.5K. But Hayes wasn’t alone. 

During the 62% decline, ENA’s supply outside of exchanges climbed higher, unlike the Q1 2025 dip.

This meant there was dip buying as some players took advantage of the discounted window to add more exposure to ENA.

Source: Santiment

Overall, Ethena emerged as one of the casualties of the October 10 crash, triggering $8B in USDe outflows and a 62% price decline for ENA.

While USDe was yet to front a strong recovery, ENA saw active buying during the dip. 

Key Takeaways

• USDe Outflows Highlight DeFi Vulnerabilities: The $8 billion redemptions post-crash exposed risks in synthetic stablecoins, with depegging events accelerating exits.
• Competitive Shifts in Stablecoin Yields: While USDe declined, inflows to sUSDS and syrupUSDC reached billions, indicating user preference for diversified protocols.
• ENA Dip Buying Signals Potential Rebound: Reduced exchange supply and purchases by figures like Arthur Hayes suggest strategic accumulation amid the 62% price drop.

Conclusion

The Ethena USDe outflows and ENA price decline following the October 2025 crash underscore the volatile nature of yield-bearing stablecoins in DeFi. With $8 billion redeemed and TVL halved, the protocol faces challenges, yet signs of accumulation in ENA point to underlying resilience. As the market stabilizes, Ethena’s focus on enhanced hedging could drive recovery—investors should monitor on-chain developments for emerging opportunities in this evolving space.