MADE POSSIBLE AFTER

Last updated: June 16, 2025, 03:06  |  Written by: Brock Pierce

Made Possible After
Made Possible After

When Stablecoins 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 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

– 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

What Causes Stablecoins to Lose Their Peg?

Why Do Stablecoins Become Unstable? - CoinRank

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

Stablecoins: A Deep Dive into Valuation and Depegging

Stablecoin Depegging: Causes and Mitigation Strategies

How and why do stablecoins depeg? - Cointelegraph

Why Do Stablecoins Depeg? - CoinMarketCap

Crypto: Why do Stablecoins Lose their Peg? - Watcher

Brock Pierce can be reached at [email protected].

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