Both stablecoins recovered to their

Stablecoins aim for price stability but often fail due to trust issues, liquidity problems, and external shocks. Centralized, algorithmic, and decentralized stablecoins each have unique weaknesses

Why Do Stablecoins Depeg? - CoinMarketCap

– Both stablecoins recovered to their peg levels after the Federal Reserve confirmed that it would support the banks’ creditors. – Both stablecoins also subsequently adjusted the composition of

In May

Stablecoin Depegging: Causes and Mitigation Strategies

How and why do stablecoins depeg? - Cointelegraph

In May 2025, a significant event unfolded in the cryptocurrency space: the stablecoin UST from the Terra project lost its peg. Prior to this incident, Terra's native token

When stablecoins lose their peg

Why Do Stablecoins Become Unstable? - CoinRank

What Causes Stablecoins to Lose Their Peg?

When stablecoins lose their peg, market participants, issuers, and regulators must act swiftly to mitigate negative impacts and restore market confidence. First, stablecoin issuers need to

Stablecoins: A Deep Dive into Valuation and Depegging

Why stablecoins lose their peg

Crypto: Why do Stablecoins Lose their Peg? - Watcher