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Current stablecoin metrics show that USDE, the popular yield-bearing stablecoin, has slipped to fifth place among the top U.S. dollar-pegged tokens by market capitalization. Over the past three days, Ethena’s USDE supply has decreased by 130 million, pushing First Digital’s FDUSD into the fourth largest spot.
Just three days ago, Bitcoin.com News highlighted Ethena’s USDE shedding $770 million in less than two months, and since then, another $130 million has been redeemed. On Aug. 31, 2024, USDE’s market valuation stood at $2.84 billion, but today it’s down to $2.71 billion. According to coingecko.com, Ethena’s stablecoin supply has shrunk by 15.7% over the past 30 days.
FDUSD and USDE metrics according to coingecko.com on September 2, 2024.
As of Sept. 2, 2024, First Digital’s FDUSD boasts a market cap of around $2.79 billion—roughly $80 million more than USDE. This isn’t FDUSD’s first time in the fourth position; it’s been here before. While USDE’s supply dwindled over the last month, FDUSD’s grew by a solid 40.1%.
Although FDUSD doesn’t offer yield, it ranks among the top coins by global trading volume. Over the past week, FDUSD has consistently held the fifth spot in global trade volume, right below USDC. On Sept. 2, FDUSD saw $3.61 billion in trading volume over the last 24 hours, whereas USDE, primarily held for yield, recorded a much smaller $60.95 million in trades during the same period.
The shifting landscape of stablecoin rankings highlights the impact of market dynamics on even the most established tokens. As FDUSD gains momentum, it spotlights the importance of adaptability in the competitive stablecoin market. The decline of USDE reflects broader trends and potential challenges for yield-bearing assets in maintaining their market position amidst evolving market preferences and competition.
