Ethena’s synthetic-dollar stablecoin USDe experienced a significant contraction in November, with its market cap falling from $9.3 billion to $7.1 billion due to $2.2 billion in redemptions, marking a 24% decline in supply. The overall stablecoin market cap is at $311 billion, with US dollar stablecoins dominating at $303 billion.

Following a depegging event on Binance, Ethena’s USDe stablecoin dropped to $0.65 briefly. Despite the issue, founder Guy Young stated that the drop was due to a Binance-specific oracle problem and not a flaw in USDe’s underlying collateral mechanism. USDe lost over 53% of its market capitalization since October.

In contrast, fiat-backed stablecoins like USDT, USDC, and PYUSD saw growth in November. USDT increased by $1.3 billion to $184.6 billion, USDC climbed to $76.5 billion, adding $600 million, and PYUSD surged from $2.8 billion to $3.8 billion, with a $1 billion inflow for the month, representing a 35% growth.

Ripple’s RLUSD stablecoin reached a market cap of $1.26 billion in November, up from $960 million, marking a $300 million increase. The stablecoin continued its growth trend throughout the month, solidifying its position in the top 10 USD stablecoins.

Read more at Cointelegraph: USDe Drops 24% in November As Fiat-Backed Stablecoins Gain Ground