Moody’s reports 600 stablecoin depegs in 2023
Research by Moody’s Analytics shows that despite their name, so-called stablecoins have depegged at least 609 separate times in 2023. A similar number of depegging events occurred in 2022 and for the past 22 months combined, the 25 largest stablecoins have depegged at least 1,316 times. Indeed, Protos has detailed at least 16 incidents of Tether (USDT) trading for drastically different prices than $1. The world’s largest stablecoin has traded for as low as $0.001, as high as $1,000, and various prices in between, for the past six years. The report by Moody’s expands its own, similar analysis to take in 25 stablecoins. From this set, its analysts found over 600 separate depegging events year-to-date and over 700 last year. Moody’s Analytics Digital Asset Monitor tracks all major stablecoin s, including PayPal Coin (PYUSD), USDT, and USDC. Its Digital Asset Monitor uses AI, off-blockchain data, and various exchange inputs to track volatility and risk in so-called decentralized financ...