In May

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

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

Why stablecoins lose their peg

Both stablecoins recovered to their

– 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

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

Why Do Stablecoins Become Unstable? - CoinRank

What Causes Stablecoins to Lose Their Peg?

Stablecoin Depegging: Causes and Mitigation Strategies

Crypto: Why do Stablecoins Lose their Peg? - Watcher

Stablecoins: A Deep Dive into Valuation and Depegging

How and why do stablecoins depeg? - Cointelegraph

Why Do Stablecoins Depeg? - CoinMarketCap