Proceedings of the 2025 International Conference on Hybrid Commerce, Human Capital, and Economic Dynamics (ICHCH 2025)

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A Comparative Analysis of Market Reactions to Stablecoin Peg Deviations

Authors
Yue Gu1, *, Peiyi Wen2
1College of Business, University of Wisconsin-Eau Claire, Eau Claire, United States
2College of Business, The University of New South Wales, Sydney, Australia
*Corresponding author. Email: GUY6592@uwec.edu
Corresponding Author
Yue Gu
Available Online 18 June 2026.
DOI
10.2991/978-2-38476-585-0_78How to use a DOI?
Keywords
Stablecoin; Peg Deviations; Asset
Abstract

Stablecoin have become a critical component in the digital financial ecosystem; it is a medium of exchange, a store of value, and a bridge between traditional finance and decentralized finance. However, its stability has been repeatedly challenged in real-world events. This article uses the event study method to explore how stablecoin de-pegging affects the market and how the market responds. This article selects representative de-pegging events of United States Stable Terra (UST), United States Dollar Coin (USDC), and United States Dollar Tether (USDT), and analyzes the reaction of related crypto assets before and after the events. The result of the research shows that, compared with fiat collateralized stablecoins, the algorithmic stablecoins are more likely to cause severe market volatility. Meanwhile, this study also observed significant cross-currency spillover effects, which indicate that stablecoin risks have systematic transmission characteristics. The results of this study emphasize the significant importance of enhancing the transparency of the reserve mechanism, strengthen the support of real assets, and the timeliness of regulatory intervention for maintaining the stability of digital finance.

Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2025 International Conference on Hybrid Commerce, Human Capital, and Economic Dynamics (ICHCH 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
18 June 2026
ISBN
978-2-38476-585-0
ISSN
2352-5428
DOI
10.2991/978-2-38476-585-0_78How to use a DOI?
Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Yue Gu
AU  - Peiyi Wen
PY  - 2026
DA  - 2026/06/18
TI  - A Comparative Analysis of Market Reactions to Stablecoin Peg Deviations
BT  - Proceedings of the 2025 International Conference on Hybrid Commerce, Human Capital, and Economic Dynamics (ICHCH 2025)
PB  - Atlantis Press
SP  - 691
EP  - 698
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-2-38476-585-0_78
DO  - 10.2991/978-2-38476-585-0_78
ID  - Gu2026
ER  -