Ethena's USDe stablecoin briefly lost its dollar peg during a sharp market sell-off, reflecting the ongoing volatility in the cryptocurrency sector amid geopolitical tensions and record liquidations.
Ethena’s yield-bearing stablecoin, USDe, temporarily dropped to 65 cents on Binance amid a major market sell-off triggered by U.S. President Trump’s tariff announcement. The incident was part of a larger liquidation event in the crypto market, which saw over $19 billion liquidated in 24 hours. Despite the brief depeg, USDe quickly recovered, and Ethena Labs confirmed the stablecoin remained overcollateralized with mint and redeem functions intact. The drop also caused Ethena’s governance token, ENA, to fall by 40% before partially recovering.