Stablecoins, including USDC, USDT, and USDe, do not have a strict peg to the US dollar and can lose value due to market fluctuations. This is the belief of Greg Chipolaro, head of global research at the financial company NYDIG.
This is reported by Business • Media
Market Mechanisms vs. Fixed Rate
In his statement, Chipolaro emphasized that during the market crash on the night of October 11, 2025, the price of the USDe stablecoin from Ethena on Binance temporarily dropped to $0.65. Even well-known stablecoins like USDC and USDT temporarily lost their peg to the dollar during this period. This proves that their stability is not guaranteed and depends on market dynamics.
“Stablecoins are not pegged to $1.00. Period. In fact, they are market-traded instruments, and their prices fluctuate around $1.00 due to trading dynamics.”
The True Nature of Stablecoin Stability
The analyst emphasized that the idea of a “peg” creates a misleading sense of security. The real stability of stablecoins is ensured by market mechanisms, primarily through arbitrage. Traders buy coins when their price drops below par and sell when it rises above. Issuers, for their part, are responsible for creating and redeeming tokens in response to changes in demand.
Chipolaro also noted that even the most popular stablecoins can exhibit instability in real-time, indicating underappreciated risks for users.
It is worth noting that earlier, European officials called for the development of euro-denominated stablecoins to counter the dominance of the dollar in the digital asset market.