Did Stablecoin De-Pegging Affect USDC and DAI More Than Others?

Stablecoins can lose their pegs, but not all are equal. According to S&P Global analysts, USDC and DAI have been more prone to depegging than others

In a recent research paper, Dr. Cristina Polizu and team examined the depegging of leading stablecoins: USDT, BUSD, USDP, USDC, and DAI

Over the past two years, USDC and DAI have spent more time below $1 compared to USDT and BUSD. The longest depeg event saw USDC at $0.90 for 23 mins and DAI for 20 mins

USDT dipped below $0.95 for only 1 minute during the same period, while BUSD remained above $0.975 from June 2021 to June 2023

The frequency of depegging was also higher for USDC and DAI. Yet, the researchers noted that shorter de-peg events might be just noise

In March 2023, USDC dropped to $0.87 due to the Silicon Valley Bank collapse. MakerDAO, holding over 3.1 billion USDC, was also affected

"Maintaining stability requires good governance, adequate collateral, liquidity, confidence, and adoption," concluded Dr. Polizu and team

Despite media FUD, USDT has proven to be more stable than USDC, with a 25% supply increase in 2023. USDC, on the other hand, saw its supply shrink by 41.5%.