USDe Market Cap Plunges by 27% Since July as ENA Faces Challenges
CryptoNewsTerminal Staff10 Sep, 2024
USDe Market Cap Plunges by 27% Since July as ENA Faces Challenges
Tether's (USDT) rival stablecoin USDe has suffered a significant decline in its market capitalization, falling by over $900 million since July. As of August, USDe's market cap stands at $2.7 billion, down from $3.6 billion two months prior, marking a 27% decrease. The primary factor driving this market cap decline is the substantial drop in ENA, USDe's native token. ENA has witnessed an 85% plunge since its peak in April. This has subsequently led to a decrease in USDe purchasing power since ENA is used to mint and redeem USDe. To mitigate risks, the USDe protocol aims to maintain reserves equivalent to at least 1% of the circulating USDe supply. Currently, the reserves stand at $45 million, representing 1.6% of USDe's market cap. Investors evaluating USDe's stability should carefully consider this reserve metric.
