DeFiBeginner

Depeg

A significant move away from an asset's intended reference price, such as a stablecoin's dollar target.

PLAIN-ENGLISH DEFINITION

In more detail

When someone says a stablecoin has depegged, the market is no longer pricing it close to its target. Reserve doubts, redemption problems or thin liquidity can all contribute. The token may recover its peg, but a familiar ticker does not make recovery automatic.

IN THE WILD

How you might use it

"My 'dollar' token is trading at $0.92. The name hasn't changed; the peg has."

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By Crypto Dictionary · Published · Updated

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