Stablecoin

Bank AI

USDC

Real USD

In a recent <a rel="nofollow" href="https://www.moodysanalytics.com/articles/2023/moody_launches_new_digital_asset_monitor_to_track_risk">report</a> by Moody’s Analytics, an unsettling pattern emerges within the cryptocurrency landscape. Throughout 2023, large-cap stablecoins, boasting a market valuation exceeding $10 billion, have depegged a staggering 609 times. This figure, alarmingly close to the 707 incidents reported in 2022, casts a shadow on the perceived stability of these digital assets. 
<h2 id="large-cap-stablecoins-unsteady-state">Large Cap Stablecoins Unsteady State</h2> 
Despite their intended purpose as beacons of stability in the volatile seas of cryptocurrency, these large-cap stablecoins have repeatedly failed to maintain their peg to fiat currencies. Notably, the USDC stablecoin from Circle <a href="https://coingape.com/circle-mints-usdc-directly-on-ethereums-polygon-protocol/">dropped</a> to $0.88 in the wake of the Silicon Valley Bank debacle on March 11. Meanwhile, October saw the Real USD stablecoin’s value plummet by nearly half, spotlighting the persistent volatility that haunts the sector. 
<h2 id="moody-s-analytics-sheds-light-on-frequent-depegging">Moody’s Analytics Sheds Light on Frequent Depegging</h2> 
Moreover, the high frequency of depegging events sheds light on the underlying instability contrary to the market’s expectations. Moody’s report offers insight, indicating that the triggers for these depegs are manifold, encompassing a broad spectrum of macroeconomic and coin-specific factors. Hence, it becomes evident that even with considerable market heft, stablecoins are not immune to disruptive swings. 
Significantly, the looming specter of <a href="https://coingape.com/bitcoin-price-rally-to-start-soon-as-fed-interest-rate-cuts-expected-by-march-24/">rising</a> interest rates has been identified as a recurrent catalyst contributing to the market’s headline volatility. Consequently, Moody’s Analytics has taken a proactive step in creating the Digital Asset Monitor. This innovative tool aims to predict the likelihood of a stablecoin’s depegging within a 24-hour window. 
The initial version of this monitoring system will track 25 fiat-backed stablecoins, including industry heavyweights like Tether, USDC, and the forthcoming PayPal Coin. Hence, investors and market participants are poised to gain a critical predictive edge, allowing for more informed decision-making amidst the tumultuous crypto markets. 
Read Also: <a href="https://coingape.com/bank-of-england-proposes-stablecoin-retail-integration/">Bank of England Proposes Stablecoin Retail Integration</a> 
The post <a rel="nofollow" href="https://coingape.com/moodys-report-reveals-609-depegs-in-2023-for-top-stablecoins/">Moody’s Report Reveals 609 Depegs in 2023 for Top Stablecoins</a> appeared first on <a rel="nofollow" href="https://coingape.com">CoinGape</a>.

Moody’s Report Reveals 609 Depegs in 2023 for Top Stablecoins

Table of Contents

Coingape News Media

Other articles published on Nov 6, 2023

Shiba Inu Price Prediction: SHIB Price EXPLODES! Buy Shiba Inu Coin?

Ethereum (ETH) Sets Sights on $2,000 Level After Breaking 200-Day Resistance

Top Crypto Expert Reveals He’s Buying These Altcoins for the Months Ahead

Mysterious Post from Binance CEO CZ! "He Pointed to November 8!"

Ripple CEO Teases "Proverbial Cage Match"

Cosmos Price Prediction 2023-2028: Can ATOM Price Conquer $30?

Join our free newsletter for daily crypto updates!