USDC briefly fell to about $0.87 in March 2023 when its issuer had cash stuck in a failing bank; TerraUSD depegged in 2022 and never recovered. Liquid staking and wrapped tokens can depeg too.
DeFi
Depeg
Also called: de-peg · off-peg
In shortWhen a stablecoin or pegged token trades meaningfully away from its target price.