Ethena’s USDe Supply Falls Back to 2024 Levels After $1.6B in Redemptions - Crypto Economy

Ethena recorded a sharp contraction in the supply of its USDe synthetic dollar, which retreated to levels not seen since November of 2024. The decline accelerated after approximately $1.6 billion in redemptions were recorded toward the end of April 2026, reflecting a cooling in demand for the protocol’s delta-neutral yield products.

Among the factors explaining the capital outflows, yield compression stands out: USDe and its staking variant, sUSDe, rates fell to around 3.5% annually, prompting several investors to rotate toward more traditional assets such as U.S. Treasury bills. Adding to this was the indirect effect of the exploit suffered by KelpDAO on April 18, 2026, which triggered a broad capital flight from synthetic structures toward more established stablecoin environments, even though Ethena had no direct exposure to the compromised assets.

To counter the trend, Ethena will implement a diversification strategy that includes institutional lending agreements and tokenized real-world assets, such as gold-backed instruments. The adoption of USDe by Singapore Gulf Bank and white-label partnerships under the “Stablecoin-as-a-Service” model are the bets to generate organic demand that offsets the current pressure on yields.

Source: https://defillama.com/stablecoin/ethena-usde

Disclaimer: Crypto Economy Flash News are based on verified public and official sources. Their purpose is to provide fast, factual updates about relevant events in the crypto and blockchain ecosystem.

This information does not constitute financial advice or investment recommendation. Readers are encouraged to verify all details through official project channels before making any related decisions.