Moody’s records 609 depegs of large stablecoins in 2023

In 2023, stablecoins with high market capitalization lost their peg to the underlying asset 609 times, according to a Moody’s Analytics report.

In total, from January to September, there were 1,914 depegs.

For comparison, in 2022 there were 707 depegs of large-cap stablecoins, from a total of 2,847.

“A large number of deviations from the price provide context for the overall volatility observed in the sector. In 2022 there were high-profile depegs driven by rising interest rates, and the same trend was observed again in March 2023,” the experts noted.

However, Moody’s notes that losing parity with fiat currency is widespread among stablecoins and is driven by a range of macroeconomic and coin-specific factors.

Separately, the research firm launched the Digital Asset Monitor (DAM), an AI-based monitoring system for tracking volatility and risks in DeFi.

The tool provides real-time information, including the dynamics of capitalization and liquidity of stablecoins, as well as the stability of issuers and the collateralization of their reserves. This data is combined with the “Transparency Index,” highlighting the quality of disclosures by issuing companies.

DAM also accounts for off-chain and on-chain factors to provide a unified and comprehensive view of risks associated with stablecoins. The technology will be available on a subscription basis via the SaaS platform.

Additionally, Moody’s Analytics announced the launch of its own DeFi communities, enabling DAM users to exchange ideas and views “in the rapidly evolving space of decentralized finance.”

In March, the second-largest stablecoin USDC lost its peg to the dollar amid the collapse of Silicon Valley Bank, where part of its collateral was stored.

In September, Kaiko analysts drew attention to a small, but persistent deviation of USDT’s price from the US dollar.

The collateralized tokenized real estate stablecoin lost its peg, slipping in price by 50%. Prior to the depeg, the coin’s market capitalization was about $45 million.