Athena’s US dollar has lost $8.3 billion since the October crypto crash.
Athena's artificial dollar USDe has seen net inflows of nearly $8.3 billion since the main liquidity event on October 10.
According to a 10x Research report, the October selloff marked a turning point for the crypto market, reversing the bull phase into a bearish period. The crash wiped out the value of the $1.3 trillion crypto market, roughly 30% of its total capitalization at the time.
Athena USDe, which relies on structured hedges and hedges rather than traditional fiat stocks, has “experienced a high level of overconfidence” in these conditions, the analysts wrote.
According to data from CoinMarketCap, the USD market capitalization was nearly $14.7 billion on October 9.
Related: $19B crypto market crash: Was it profit, Chinese tariffs or both?
The USDE's Short Depreciation Problem
Following the October 10 crash, USDe temporarily lost its peg and dropped to $0.65 on Binance. According to Guy Young, founder of Athena Labs, the short survey of the exchange was caused by an internal Oracle exchange and not by problems with the stable coin's handling, protocol or ransom mechanics.
He said US dollar creation and redemptions were operating normally during the market crash, with nearly $2 billion spent on major decentralized finance (DeFi) platforms in a 24-hour period and only minor price fluctuations elsewhere. According to CoinMarketCap data, at the time of writing, USDe is trading at $0.9987.
In the year The crypto market crash on October 10 was the largest liquidation event in crypto market history. According to CoinGlass data, more than $19 billion in crypto wallets have been liquidated, resulting in a $65 billion drop in open interest.
RELATED: Crypto.com CEO Urges Investigation After $20B Liquidation
Crypto market activity has stopped
Broader market activity also slowed after the crash. Crypto trading volume is down nearly 50%, with US-listed Bitcoin exchange-traded funds (ETFs) seeing net outflows of nearly $5 billion since the end of October.
10x Research's current weakness is less on retail sales and more on deliberate returns on adjusted capital. As profits and liquidity retreat, Bitcoin (BTC) has diverged from both stocks and gold, trading as a neutral risk asset rather than a macro hedge.
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