GlossaryIntermediate
Depeg
When a stablecoin's market price moves meaningfully away from its intended target value.
A depeg occurs when a stablecoin's actual market price moves meaningfully away from its intended target value, either temporarily or, in more severe documented cases, permanently.
Depegging events have occurred across different stablecoin designs, with algorithmic stablecoins historically showing the most severe, well-documented cases.
Examples
- A stablecoin trading meaningfully below its intended $1 target is said to have depegged.
- Some depegging events have been temporary, while others have been permanent and severe.