TVL Ethena plunges more than 50%, USDe records record net outflows since October
According to data from DeFiLlama, Ethena’s total value locked (TVL) has fallen sharply by more than 50% since the “1011” event, declining from a peak of $14.305 billion to around $6.551 billion. The current TVL structure of Ethena is largely driven by USDe, the protocol’s core stablecoin.
Data from the Entropy Advisors dashboard shows that redemption pressure on USDe has increased significantly. Since October, USDe has recorded cumulative net redemptions exceeding $8 billion. In October alone, net outflows surpassed $5 billion, marking the highest level since the asset was launched.
These developments reflect a deterioration in market confidence in Ethena’s model amid tightening liquidity conditions and a broader spread of risk-averse sentiment across the cryptocurrency market. The strong withdrawal trend could continue to put pressure on the scale of operations and the overall stability of the Ethena ecosystem in the period ahead.
