USDE falls to 5th place as FDUSD surges to 4th position
USDE (CRYPTO:USDE), a yield-bearing stablecoin, has recently fallen to the fifth position among stablecoins by market capitalisation.
This shift in rankings comes as First Digital’s FDUSD (CRYPTO:FDUSD) has risen to claim the fourth spot.
Over the past three days, Ethena’s USDE experienced a significant reduction of $130 million in its supply, leading to a decline in its market cap.
As of September 2, 2024, USDE’s market valuation has decreased to approximately $2.71 billion, down from $2.84 billion just three days prior.
This drop follows a previously reported loss of $770 million in value over the past two months.
The reduction in USDE’s supply over the last 30 days has been substantial, with Coingecko.com data showing a 15.7% decrease.
This decline contrasts with the performance of FDUSD, which has seen a 40.1% increase in supply during the same period.
FDUSD’s market cap now stands around $2.79 billion, surpassing USDE by roughly $80 million.
Although FDUSD does not offer yield, it has maintained a strong presence in global trading volume.
Over the past week, FDUSD has consistently ranked fifth in trading volume, just below USDC.
On September 2, 2024, FDUSD recorded $3.61 billion in trading volume over the last 24 hours, while USDE, which is primarily held for its yield, reported significantly lower trading volume of $60.95 million.
The shift in stablecoin rankings highlights the impact of market dynamics on even well-established tokens.
As FDUSD gains momentum, it underscores the importance of adaptability in the competitive stablecoin market.
The decline of USDE reflects broader trends and challenges for yield-bearing assets, as market preferences and competition continue to evolve.
This change in the stablecoin landscape demonstrates the volatility inherent in the market and the need for constant adaptation by these financial instruments.
At press time, the Ethena USDe (USDE) price was $0.9995, while the First Digital USD (FDUSD) price was $1.00.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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