The market capitalization of USD has dropped from 14.7 billion USD to about 6.4 billion USD since the collapse in October due to the Crisis of Confidence.

PANews December 23 news, according to the 10x Research report, Ethena's synthetic stablecoin USDe has evaporated about 8.3 billion USD in market capitalization since the market crash on October 10, dropping from 14.7 billion USD on October 9 to approximately 6.4 billion USD currently, nearly Halving. This big dump reflects a sharp decline in investor confidence in leverage and synthetic collateral models. The market crash on October 10th was the largest liquidation event in the history of the crypto market, resulting in over $19 billion in crypto positions being liquidated, with a total market capitalization evaporating by about $1.3 trillion, accounting for nearly 30% of the total market capitalization at that time. During this period, the USDe temporarily de-pegged to about $0.65, but Guy Young, the founder of Ethena Labs, stated that this brief de-pegging was caused by an internal oracle issue at the exchange, rather than a problem with the protocol or collateral assets. Currently, the price of USDe has recovered to 0.9987 USD, but market activity still appears sluggish, with trading volume down about 50%. Since the end of October, approximately 5 billion USD has net flowed out of Bitcoin spot ETFs listed in the United States. Analysis indicates that this weakness is more influenced by the withdrawal of regulated capital rather than retail investors selling off.