USDe TVL Plummets -50%, MegaETH Presale Suffers Critical Technical Problem, Crypto Treasuries Reel: Where Do We Go From Here?

In today’s crypto update, Ethena saw its total value locked (TVL) drop from $14.8 billion to $7.6 billion, a reduction of more than 50% that highlights how tricky yield-bearing stablecoins can be.

When markets grow, they grow fast. However, they contract just as quickly. USDe’s TVL dropped as traders exited looping strategies on platforms such as Aave, where they were habitually recycling staked USDes as collateral to borrow USDC, only to swap back and repeat.

(Source: DefiLlama)

This created a leverage of 10x or more, and while it worked when the USDe’s yield was higher than the borrowing cost, now that the yield has fallen below Aave’s 5.4% loan rate, this strategy has run its course.

The USDe performs a balancing act to maintain its dollar peg. It holds regular crypto assets and, at the same time, bets against them in the futures market.

For USDe users, the difference in these two positions is what creates the interest that they earn. Currently, Ethena pays around 5.1% interest, much reduced from the double-digit interest it was offering earlier this year.

The market demand for leverage weakened, in turn reducing the rates the USDe relies on. However, this hasn’t really affected the usage of the stablecoin. Even with less TVL, USDe users are still all in on the stablecoin.

In fact, last month alone, the blockchain saw over $50 billion worth of transactions involving it, proving that the USDe is still useful even if the hype around it cooled off somewhat.

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Technical Glitches Derail MegaETH Pre-Deposit Event

MegaETH’s pre-deposit event went sideways on 25 November 2025 after a series of technical glitches caused the planned launch to crash out. The pre-deposit phase allowed users to get their hands on MEGA tokens before the wider sale went through.

According to the team, its Know Your Customer (KYC) process broke down due to system errors. Moreover, a developer accidentally triggered a safe multisig transaction, meant for a later stage, too soon.

Big mistake. More funds flooded in, quickly pushing the deposits beyond the planned $250 million limit. “The $250 million cap is filled by people who were spamming refresh on the Pre-Deposit Website and were able to catch the random opening time,” the team said.

MegaETH finally froze deposits at $500 million and canceled plans to expand the raise to $1 billion. The team is preparing a withdrawal plan that it will release soon for users wanting to opt out.

“At no point were assets at risk, but that doesn’t matter; we expect higher of ourselves and there are no excuses,” the team said in an X post.

The pre-deposit window came almost a month after the MEGA token auction on 27 October, selling out in minutes. The team offered 5% of the total 10 billion token supply. Bids ranged from $2,650 to $186,282, and buyers who agreed to lock up their tokens for a year got a 10% discount.

(Source: MegaETH)

The auction closed on 30 October 2025 as one of the busiest fundraiser events of the year, pulling in more than $1.3 billion in commitments.

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DATs Face The Heat: Where Do We Go From Here?

DATs or Digital Asset Treasuries, companies that stockpile crypto, are witnessing in real time their market value drop below the coins they hoard. Some have bought back their shares, even selling tokens to fund those buy-backs.

The collapse of the DATs trade, once a price booster, is now dragging the market down, and big players are facing the heat as well. Michael Saylor’s Strategy, for instance, is under a lot of pressure since the declining BTC has hurt the preferred shares it sold to fund its BTC purchases.

So what comes next? DATs have become an important signal for the health of the crypto landscape, so the traders are watching closely. Vincent Liu, Chief Investment Officer at Kronos, told Bloomberg, “A DAT has hit the floor when forced selling stops, redemptions stabilize, and the structure starts buying crypto in size again. That behavioral shift is the real signal, not a price level.”

Data from Artemis shows that the net asset value of DATs has vanished while activist investors broadly care more for boosting stick prices than for DATs buying more crypto.

(Source: Artemis)

Meanwhile, Cosmo Jiang, General Partner at Pantera Capital, said, “We’re at the point where all the bad news is out there, and the bears are the loudest voices in the room. Their interventions will push DATs toward taking more shareholder-friendly action, which ultimately will be positive for valuations across the space.”

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The post USDe TVL Plummets -50%, MegaETH Presale Suffers Critical Technical Problem, Crypto Treasuries Reel: Where Do We Go From Here? appeared first on 99Bitcoins.

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