Depegging is a material deviation of a stablecoin's market price from its stated reference value or target exchange relationship.
Stablecoins can trade above or below their target because of changes in liquidity, redemption access, reserve concerns, market stress, exchange-specific conditions, or failures in the stabilization mechanism. A brief small deviation and a persistent loss of the peg have different economic significance. StablecoinBeat should therefore report the direction, magnitude, duration, venue coverage, and reference price used when describing a depeg event.
A depeg describes observed market-price deviation. It does not by itself establish that the issuer or protocol is insolvent or that redemption at the target value has failed.
Depeg behavior provides information about market confidence, arbitrage effectiveness, liquidity, and the resilience of the stablecoin's stabilization mechanism.
A dollar-referenced stablecoin trading at $0.94 across major liquid markets has experienced a six-cent negative deviation from its $1 target.