USDe Stablecoin Circulating Supply Drops by 40%, Raising Questions about DeFi Stability

The cryptocurrency market experienced a significant shock in October when the USDe circulating supply plummeted by 40%. This dramatic drop has sparked debate and concern within the DeFi community, particularly regarding the stability of algorithmic stablecoins and their revenue models during market turbulence. analysis by DL News, reveals that this decline is linked to a major vulnerability in USDe’s core funding mechanism.