USDT Depeg History

USDT Depeg History: Notable Events & What Caused Them

By: USDTPeg.com
March 15, 2026

While USDT has maintained its dollar peg for most of its history, there have been several notable episodes where the price deviated significantly from $1.00. Understanding these events helps traders assess peg risk and make informed decisions.

2018: Early Volatility Concerns

In October 2018, growing concerns about Tether's reserve transparency triggered a sharp selloff. USDT briefly fell to $0.88 on some exchanges as market participants worried about whether the dollar backing was genuine. The event prompted widespread scrutiny of Tether's finances and led to an early wave of regulatory attention.

2022: The TerraUSD Collapse Ripple Effect

The most significant depeg event in recent memory occurred in May 2022, following the catastrophic collapse of TerraUSD (UST). Panic spread across the stablecoin market, and USDT briefly fell to approximately $0.95 on several exchanges. The event demonstrated how contagion risk can spread between stablecoins, even those with fundamentally different backing structures. Notably, during this same period, USDC temporarily surged above $1.00 as capital fled into perceived safer alternatives.

2023: Silicon Valley Bank Fallout

In March 2023, USDC suffered a significant depeg after revealing $3.3 billion in deposits held at the collapsed Silicon Valley Bank. During this period, USDT traded at a notable premium above $1.00 as investors fled into Tether, which they perceived as having lower direct exposure to the US banking crisis. This episode illustrated how different stablecoins can move in opposite directions during stress events.

2025: $500B Market Crash

In October 2025, a broad cryptocurrency market selloff saw approximately $500 billion in value evaporate in days. While USDT and USDC both held their pegs and briefly traded above $1.00 due to safe-haven demand, algorithmic stablecoins like USDe dropped to $0.65 on Binance at the peak of the panic. The event renewed debate about what 'pegged' really means for different stablecoin architectures.

Lessons from Depeg Events

The historical record shows that fiat-backed stablecoins like USDT are more resilient than algorithmic alternatives, but not immune to deviation. Reserve transparency, regulatory compliance, and market liquidity are the three pillars that determine how quickly a peg can recover after stress. Traders monitoring usdtpeg.com can track real-time deviations across all major exchanges and historical depeg charts.