Large cap stablecoins have depegged 609 times this year, Moody’s Analytics says

Quick Take

Stablecoins with market capitalizations of over $10 billion have depegged 609 times so far this year, Moody’s Analytics said in a new report.
That’s compared to 707 depegs of large cap stablecoins in 2022.

Large cap stablecoins have depegged, or fluctuated by more than three percent in a day against their fiat peg, 609 times thus far in 2023, according to a new report from Moody's Analytics. That's compared to 707 depegs that occurred in 2022.

A large cap stable coin refers to one with a market capitalization of over $10 billion.

"The high number of depegs provides context to headline volatility seen in the sector," the report stated. "In 2022, there were high-profile depegs triggered by rising interest rates, a trend seen again in March 2023. However, Moody’s data shows that depegs are remarkably common among stablecoins and seen for a host of macro and coin-specific factors."

Notable stablecoin depegs

This year has seen numerous stablecoins depegs, such as Circle's USDC stablecoin falling to $0.88 on March 11 after the Silicon Valley Bank collapse and the Real USD stablecoin crashing around 50% on Oct. 11, The Block previously reported.

Moody's Analytics said its new Digital Asset Monitor will signal the probability of a stablecoin depeg from a fiat currency in a 24-hour time horizon, with a launch version tracking 25 fiat-backed stablecoins including Tether, USDC, and PayPal Coin.