Ethena’s USDe Contracts as Dollar Stablecoins Hit Supply Milestones

Key Notes

USDe's market cap has dropped from $9.3 billion on November 1 to $7.1 billion on November 30.
The USDe token redemption saw a 24% decline in supply in November.
Meanwhile, PYUSD is seeing a reverse with a massive boost in supply from $1.2 billion to $3.8 billion in 3 months.

USDe, Ethena’s synthetic-dollar stablecoin, has seen a sharp fall in its monthly supply as most of its counterparts attracted billions in inflows. The token also registered declines on some of its other metrics, including token redemption. Notably, the general stablecoin market appears to be experiencing meteoric growth at this time

Are USDe Users Selling Their Stablecoin Holdings?

From a market capitalization of $9.3 billion on November 1 to $7.1 billion on November 30, , USDC , and PYUSD are recording inflows running into the tune of several billions.

For instance, PayPal’s PYUSD could boast of only $1.2 billion in market cap in September. However, this metric has seen an exponential rise to over $3.8 billion, according to DefiLlama.

PayPal's PYUSD has grown from $1.2B market cap in September to over $3.8B today.
Track over 300 stablecoins on DefiLlama. pic.twitter.com/leBEixDhQ6
— DefiLlama.com (@DefiLlama) December 3, 2025

PYUSD can attribute this progress to the introduction of a 3.7% yield for US users. To earn this annual yield, all users have to do is simply hold their PYUSD in PayPal or Venmo wallets.

They do not need to lock up their funds or move them elsewhere to receive the benefit. At the time, PayPal had hoped that this integration would drive adoption of the stablecoin.

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Moreso, the entire stablecoin market has a market cap of $311 billion, largely dominated by USD-backed tokens. This category alone captures about $303 billion of the total stablecoin valuation.

In September, USDe alone boasted of 4.5% of the global stablecoin market with $14.4 billion market cap. This was around the time when Kraken exchange announced the listing of the stablecoin.