After the October market meltdown, Ethena was among the hardest-hit protocols — but some traders treated the fallout as a buying opportunity.
What happened
- Ethena’s TVL, largely driven by its yield-bearing stablecoin USDe, plunged from $14.8 billion to $7.4 billion, effectively halving in value (Dune).
- Investors redeemed USDe aggressively: $5.7 billion was pulled in October alone, and total outflows reached about $8 billion over the following two months (Dune).
- The October 10 crash’s liquidation wave was amplified when USDe temporarily depegged on Binance, which intensified redemptions and outflows.
Where capital went
- As USDe bled liquidity, capital rotated into competing yield-bearing stablecoins. Over the past 90 days, products such as Sky’s sUSDS and Marple’s syrupUSDC recorded notable inflows while USDe continued to see heavy withdrawals (Stable Watch).
- In short: many holders left Ethena’s USDe for rival yield offerings.
ENA price action and market interest
- ENA, Ethena’s native token, tumbled roughly 62% in Q4 — sliding from about $0.80 to below $0.20, a drop of roughly $0.50 (TradingView).
- On-balance volume (OBV) hit record lows, signaling sharply reduced trading activity and investor interest during the downturn.
- Price levels are now comparable to August 2024 lows, which some market participants view as an attractive entry point should the broader market recover.
Who bought the dip
- High-profile traders were among those adding exposure. BitMEX co-founder Arthur Hayes swapped ETH for "high-beta DeFi assets," picking up 1.22 million ENA (around $257.5K) according to Lookonchain.
- Santiment data shows ENA supply held outside exchanges rose during the 62% descent — a sign of accumulation by some wallets, contrasting with the behavior during the Q1 2025 dip.
Bottom line
Ethena was a clear casualty of the October crash: USDe saw roughly $8 billion in outflows and ENA fell about 62%. While USDe has yet to stage a strong rebound, ENA attracted dip buyers and saw on-chain accumulation outside exchanges — a mixed picture that underscores how yield-bearing stablecoin markets can rapidly reallocate risk during volatility.
Disclaimer: This content is informational and not investment advice. Cryptocurrency trading is high-risk; do your own research before making decisions. © 2025 AMBCrypto
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