The market capitalization of USD has dropped from 14.7 billion USD to about 6.4 billion USD after the Crisis of Confidence following its collapse.

According to Mars Finance, a report by 10x Research states that Ethena's synthetic stablecoin USDe has seen its market capitalization evaporate by approximately $8.3 billion since the market crash, dropping from $14.7 billion to about $6.4 billion currently, nearly halving. This big dump reflects a sharp decline in investor confidence in leveraged and synthetic collateral models. The market crash was the largest liquidation event in the history of the crypto market, resulting in over $19 billion in crypto positions being liquidated, with a total market capitalization evaporating by about $1.3 trillion, accounting for nearly 30% of the total market cap at that time. During this period, USDe briefly depegged to about $0.65, but Guy Young, the founder of Ethena Labs, stated that this temporary depeg was caused by an internal Oracle Machine issue at the exchange and not by a protocol or collateral asset problem. Currently, the price of USDe has recovered to $0.9987, but market activity remains sluggish, with trading volume down about 50%. Since the end of October, Bitcoin Spot ETFs listed in the U.S. have experienced a net outflow of about $5 billion. Analysts point out that this weakness is more influenced by the withdrawal of regulatory capital rather than retail investor dumping.