👉👉👉 USDE and FDUSD Experience Brief Depegs Amid Saturday’s #CryptoMarket Shake-Up
The #stablecoin sector faced scrutiny once again as two prominent stablecoins, #ethena 's USDE and First Digital's FDUSD, temporarily deviated from their intended pegs to the U.S. dollar during market declines on Saturday.
USDE, the fifth-largest stablecoin by market capitalization, saw its value drop to $0.965 each, while FDUSD, the fourth largest, fell to $0.9557 per coin. Both stablecoins experienced brief periods of depegging, lasting approximately 30-45 minutes, before recovering to $0.99 each by Sunday, April 14, 2024.
The incident sparked considerable discussion within the crypto community, particularly focusing on USDE. Some viewed it as a stress test for the stablecoin, while others expressed pessimism about its long-term viability. Concerns were raised about Ethena's funding model and its ability to sustain itself, especially during bear market cycles.
The episode highlighted the inherent risk factors in the stablecoin sector, emphasizing the challenges of maintaining pegs amidst market turmoil and price fluctuations. However, the resilience of USDE and FDUSD, despite the temporary depegging, underscores the complexity and dynamics within the world of U.S. dollar-pegged tokens.
Source - news.bitcoin.com
