Key notes
- The market capitalization of USDe increased from $9.3 billion on November 1 to $7.1 billion on November 30.
- The USDe token buyback saw a 24% drop in supply in November.
- Meanwhile, PYUSD is experiencing a reversal with a massive increase in supply from $1.2 billion to $3.8 billion in 3 months.
USDe, Ethena’s synthetic dollar stablecoin, saw a sharp decline in monthly supply as most of its peers attracted billions of inflows. The token also saw a decline in some of its other metrics, including token buybacks. Notably, the general stablecoin market appears to be experiencing tremendous growth at the moment.
Are USDe users selling their Stablecoin holdings?
From a market capitalization of $9.3 billion on November 1 to $7.1 billion on November 30, USDe she may have experienced one of her strongest monthly contractions yet.
It should be noted that this decline has continued for several months. On top of this massive drop, it saw around $2.2 billion in redemptions. This corresponds to a 24% drop in supply in November, according to Coingecko data.
For context, USDe is a synthetic stablecoin launched by Ethena and designed to maintain a peg to the US dollar.
He achieved this feat through trading strategies with crypto and futures contracts rather than holding the actual dollars. The decline in USDe outflows is an indication that users might be trading USDe on the open market or withdrawing from pools.
This is likely, as holders could liquidate their positions on decentralized applications (DApps).
PayPal’s PYUSD registers a market cap of $3.8 billion
As USDe faces this setback, fiat-backed stablecoins like USDT
USDT
$1.00
24h volatility:
0.0%
Market capitalization:
$184.73 billion
Flight. 24h:
$114.72 billion
USDC
USDC
$1.00
24h volatility:
0.0%
Market capitalization:
$77.85 billion
Flight. 24h:
$6.32 billion
and PYUSD are seeing inflows in the billions.
For example, PayPal’s PYUSD boasted a market capitalization of just $1.2 billion in September. However, this metric has seen an exponential increase to over $3.8 billion, according to DefiLlama.
PayPal’s PYUSD has grown from $1.2 billion in market cap in September to over $3.8 billion today.
Track over 300 stablecoins on DefiLlama. pic.twitter.com/leBEixDhQ6
– DefiLlama.com (@DefiLlama) December 3, 2025
PYUSD can attribute this progress to the introduction of a 3.7% return for US users. To earn this annual return, users simply hold their PYUSD in PayPal or Venmo wallets.
They do not need to lock up their funds or move them elsewhere to receive the benefit. At the time, PayPal had hoped that this integration would drive stablecoin adoption.
Additionally, the entire stablecoin market has a market capitalization of $311 billion, largely dominated by dollar-backed tokens. This category alone represents approximately $303 billion of the total valuation of stablecoins.
As of September, USDe alone held 4.5% of the global stablecoin market with a market capitalization of $14.4 billion. This was around the time Kraken was trading announced the registration stablecoin.
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Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article is intended to provide accurate and current information, but should not be considered financial or investment advice. Because market conditions can change quickly, we encourage you to verify the information for yourself and consult a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who enjoys writing about real-world applications of blockchain technology and innovations aimed at driving mainstream acceptance and global integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
