Notes on stablecoins during volatile markets
-Most major stablecoins such as USDT, USDC, DAI have held firm during the volatile period. However, some stablecoins have also temporarily lost their pegs, although they have recovered quickly afterwards
-Names to watch include Blast native USDB, TrueUSD (TUSD). In which:
•USDB: Native stablecoin on the Blast network, backed by DAI and MakerDAO. The redemption mechanism via the Ethereum network takes more time for investors
•TUSD: Depeg ~4% to 0.96 USD then recovered. According to S&P Global's stablecoin safety assessment, TUSD only scored 4 (Weak) on a scale of 1-5 with 1 being the highest score
➡️ The largest representative of decentralized stablecoin - USDe, despite recording the largest redemption volume ever, has performed well and has not been depeg.
However, the reduced funding rate on ETH could result in less yield for this stablecoin
In short: The bear market is a necessary test for stablecoins to prove their long-term viability
Data: Coin98 Insights