Ethena was hit hard after the market crash in October. The shock changed how people looked at risk and safety. One of the biggest impacts was seen in the total value locked in the protocol. Before the crash Ethena held close to fifteen billion dollars. After weeks of heavy exits that number dropped to about seven billion. In simple terms half of the value left.
Most of this drop came from USDe. USDe is the core product of Ethena and many users treated it as a place to earn yield while staying stable. After the crash confidence broke. In October alone more than five billion dollars was pulled out. Over the next two months the total outflow reached eight billion. This steady exit shows that trust takes time to rebuild once shaken.
USDe was affected more than other similar products. During the crash it briefly lost its peg on one major trading platform. That moment scared many holders. Even though the issue did not last long it was enough to trigger redemptions. When markets are already stressed people do not wait for explanations. They move first.
At the same time other yield based stable products saw inflows. Money did not leave the space fully. It rotated. Investors chose alternatives that felt safer at that moment. This shift made USDe look weaker compared to its peers even if the broader idea of yield stablecoins remained alive.
The fear around USDe also hit the Ethena token ENA. After the crash ENA fell sharply. It lost more than half of its value and dropped below earlier support levels. Trading activity dried up and interest faded. Many people stopped paying attention as price slid lower.
Still something interesting happened during this drop. Some buyers saw opportunity instead of danger. At price levels similar to past lows demand quietly returned. Large holders started to add ENA while price stayed weak. This suggests that not everyone lost faith in the project.
One well known crypto figure openly shifted into higher risk assets during the decline and added ENA to his holdings. He was not alone. Data shows that during the drop more ENA moved out of exchanges into private wallets. This usually means holders plan to keep tokens rather than sell them soon.
This behavior was different from earlier declines. In past drops ENA mostly moved onto exchanges as people prepared to sell. This time the opposite happened. That does not guarantee a rebound but it shows that some believe the worst may already be priced in.
Ethena is clearly one of the big casualties of the October crash. USDe lost billions and confidence was damaged. Recovery will not be fast. Trust needs time. Clear stability and steady performance will matter more than promises.
At the same time ENA price weakness attracted buyers who think long term. These players are betting that once fear fades value can return. Whether they are right depends on how Ethena responds in the months ahead.
For now the story is simple. Big money left USDe after the crash. The protocol shrank fast. ENA fell hard. Yet beneath the surface some investors stepped in quietly. The next phase will decide if Ethena can regain trust or remain under pressure.
