Report Reveals The Stablecoins That Have Suffered The Most De-Peg Events
12 Setembro 2023 - 8:30AM
NEWSBTC
Amidst the constant price swings and uncertainties that plague the
crypto market, stablecoins have become an invaluable asset for
investors and traders. However, analysts have revealed several
stablecoins that have been struggling to maintain the esteemed
stability reserved for these types of assets. Stablecoins Under
Pressure The inherent volatility of the crypto market and the
persistent price fluctuations of cryptocurrencies are a constant
experience in the crypto industry. Due to this, stablecoins like
USDT, USDC, and DAI have long been revered as a reliable bridge
between the volatility and instability of cryptocurrencies.
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For $2 Billion Theft However, a recent report has raised concerns
about the stability of some of the most popular stablecoins. The
report saw analysts from S&P Global explore the top five
stablecoins including Tether (USDT), Dai (DAI) Binance USD (BUSD),
USD Coin (USDC), and Paxos (USDP). The research paper
from Dr. Cristina Polizy, Anoop Garg, and Miguel de la Mata
revealed that USDC and DAI have failed to maintain their dollar peg
multiple times in the last two years, as compared to other
stablecoins like USDT and BUSD. The analysis revealed that
the de-pegging events for USDC and DAI have taken place more often
than those of USDT and BUSD. Circle’s USDC was named as the
stablecoin with the most prolonged de-pegging event, dropping to
$0.90 for 23 minutes while DAI de-pegged for 20 minutes. USDC
de-depegged for the longest duration | Source: S&P Global In
contrast, USDT dropped below the one-dollar peg for just one
minute, while BUSD has not experienced any de-pegging event since
June 2021 and June 2023. Possible Instigations For Stablecoin
De-pegging Events March 2023 saw the fall of three prominent banks
in the United States, including Silicon Valley Bank (SVB),
Silvergate Bank, and Signature Bank. Due to the affiliations of
these banks with the crypto industry, their collapse had a
significant impact on the prices of digital assets in the space.
Circle’s USDC experienced a decline of 13% below the one-dollar
mark after reports revealed that a significant portion of Circle’s
cash reserves, adding up to $3.3 billion, were kept in Silicon
Valley Bank (SVB). However, the stablecoin has since recovered and
maintained its peg following an announcement that confirmed that
the Federal Reserve would endorse the banks’ creditors.
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8,000 BTC? Here’s What He’s Up To Now Subsequently, Michael Barr, a
high-ranking official at the United States Federal Reserve raised
concerns about the adoption rate of unregulated stablecoins like
USDT and USDC, which are currently the top stablecoins by market
capitalization. As the broader crypto market watches closely
for more discrepancies in the stablecoin dollar peg, financial
firms like PayPal, have launched their own stablecoins.
Prominent platforms like Binance, and Huobi are already
incorporating the new PYUSD into their crypto portfolio. In
addition, monetary institutions like Visa are taking advantage of
stablecoins like USDC to propel expansion into new markets. USDC
market cap sitting at $26 billion | Source: Market Cap USDC on
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