De-Pegging Definition

De-pegging is the critical event where a stablecoin's market price deviates significantly from the value of its pegged asset, typically the US Dollar, signaling

De-pegging is the critical event where a stablecoin's market price deviates significantly from the value of its pegged asset, typically the US Dollar, signaling a failure in the underlying stability mechanism. This deviation from the 1:1 parity is a primary indicator of systemic risk for professional traders.

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