Researchers at cryptocurrency exchange Crypto.com have provided a fresh analysis of the decentralized finance (DeFi) market in a weekly report. The document highlights that the DeFi market has shown mixed results, with capitalization falling by 23.5%, while volumes and volatility metrics have markedly increased by 69.39% and 96.17%, respectively. These changes came amid a sharp drop in the value of bitcoin and other altcoins that occurred overnight from Sunday to Monday.
The report also highlights the significant event of the week - the rise of Ethena's synthetic dollar, USDe. USDe went through nearly $120 million in redemptions during the market consolidation. Despite significant fluctuations, the stablecoin managed to maintain its peg to the U.S. dollar, only briefly dipping to $0.997. Since launching in April 2024, USDe token volumes have exceeded 3.1 billion. Ethena's CEO, Guy Yang, noted that the system has successfully processed over $50 million in redemptions, demonstrating its resilience. Unlike traditional stablecoins, USDe uses derivative hedging strategies and collateralized assets in ETH and BTC rather than direct fiat backing.
In other news, Kiln has launched Kiln DeFi, a product that enables its users to receive rewards in steblecoins via the popular Aave, Morpho and Compound protocols. The first to integrate this infrastructure is Crypto.com DeFi Wallet.
In addition, Ripple has partnered with OpenEden to announce its entry into the US Treasury tokenized bond market. The new platform will offer XRP Ledger-based digital bonds, converting them into TBILL digital tokens.
Meanwhile, Ronin Bridge temporarily suspended its operations after falling victim to an attack by "white hat hackers" who stole $12 million worth of tokens, while Terra blockchain also came under attack, with attackers exploiting a vulnerability in IBC hooks and stealing around $1 million.
