Ethena’s synthetic USDollar stablecoin (USDe) experienced a significant drop in market capitalization during November, contrasting with the overall growth of fiat-backed stablecoins. Data from CoinGecko reveals a notable decline in USDe’s value, dropping from $9.3 billion on Nov 1 to $7.1 billion by Nov 30, accompanied by substantial redemptions totaling around $2.2 billion. This contraction followed a depegging event on the crypto exchange Binance earlier in November, which saw the token briefly drop to $0.65. Ethena founder Guy Young attributed this decline to a specific issue with Binance’s oracle and not to any flaws within USDe’s underlying collateral mechanism.