USDe suffers a massive bloodbath: what happened after the 1011 crash?

Since the fateful crash of 1011, Ethena’s synthetic stablecoin USDe has been hit by a debacle of alarming proportions. In just over two months, the market capitalization experienced a dramatic collapse, dropping from $14.7 billion to just $6.31 billion according to the latest network data.

The numbers speak for themselves: a massive outflow of $8.3 billion left the platform. To put it into perspective, USDe lost approximately 50% of its market value, a blow that does not go unnoticed in the crypto ecosystem.

What explains this decline?

The event known as the “crash of 1011” marked a critical turning point. Since then, investors have shown shaky confidence in the protocol, which is directly reflected in the capital exodus. The synthetic stablecoin, once considered a promising innovation, now faces uncomfortable questions about its long-term viability.

Recovery on the horizon?

Despite the discouraging outlook, some analysts suggest keeping USDe on the radar. The reason is simple: after such sharp declines, recovery movements tend to be equally strong. Market participants who are paying close attention are monitoring any signs of stabilization, as it could mark the beginning of a rebound.

What is clear is that Ethena has a long way to go to rebuild the lost trust after the crash of 1011.