Ethena Explores Collateral Expansion Amid 57% Drop in USDe Supply

Ethena Labs is considering diversifying the collateral backing its USDe stablecoin to include assets beyond the crypto-native sphere. This move comes as the circulating supply of USDe plummeted by approximately 57%, falling from over $14 billion to less than $6 billion. Analysts attribute this sharp contraction to "poor positioning" and yields that have become increasingly unattractive to investors compared to previous levels. By expanding its collateral base, Ethena aims to stabilize the protocol and attract a broader range of capital in the current market environment. While the massive supply drop reflects short-term bearish sentiment, the proposed diversification strategy could offer long-term resilience for the platform. Market participants are closely watching how these structural changes will impact the ENA token and the broader DeFi ecosystem.