USDe market value rebounded to US$3.46 billion, with US$1 billion of funds flowing in in the past month

According to data from , the stablecoin USDe issued by has attracted around $1 billion in new capital over the past month, with its market capitalization rebounding to $3.46 billion, only 5% lower than the historical high of $3.6 billion set in July. The cryptocurrency perpetual contract funding rate turned negative in August and September, making Ethena's strategy unfavorable for investors, as its yield is lower than the risk-free rate of the US dollar. Investors withdrew $1.2 billion from the protocol between July and October. The analysis points out that the rebound in USDe supply can be attributed to the recent surge in contract market funding rates, with Ethena's website data showing that the average APY of sUSDe (staked USDe) has risen to 29%. There may be more catalysts in the future that could drive further growth. For example, the decentralized lending protocol has added staked USDe tokens as available collateral assets, allowing users to borrow against the tokens while earning yield.