Intermediate
Depeg
Also: depegged, depegging, de-peg
When a stablecoin's market price moves away from the value it's supposed to hold.
Small wobbles of a fraction of a cent are normal. A real depeg happens when holders doubt the reservesReserves The assets a stablecoin issuer or custodian holds to back what it owes users. or redemptions, and it can spiral as people rush to exit. Some stablecoins have recovered from depegs; others have collapsed.