'Stablecoins Are Not Pegged to $1. Period,' Says NYDIG After $500B Market Drawdown
NYDIG asserts that stablecoins are not truly pegged to $1, but rather fluctuate with market forces, as demonstrated by recent market instability.Summary
NYDIG argues that the concept of stablecoins being pegged to the U.S. dollar is a misconception. Following a $500 billion crypto market sell-off, stablecoins like USDC, USDT, and USDe experienced price fluctuations, with USDe dropping as low as $0.65 on Binance. NYDIG’s Global Head of Research, Greg Cipolaro, explained that these tokens operate based on market supply and demand, not a fixed peg. The perceived stability is due to arbitrage, but this system can fail during panic, as seen during the crash when USDT and USDC traded above $1 and USDe collapsed. This reveals a fragmented ecosystem with misunderstood risks. Despite the market turmoil, lending markets like Aave experienced minimal liquidations, and NYDIG itself reported no losses.
(Source：CoinDesk)