Stable coins actually do fluctuate slightly below a dollar and quickly return. Anyone observed that too?

[Fidelia]

The entire idea that I had about stable coins is that it is always steady at a dollar and never leaves that point. Yesterday, I saw USDT price drop to $0.998 and within five minutes, it was back to a dollar value. That implies that stable coins actually fluctuate in the real sense. Not too much but they return back to their stable price almost immediately. Who has observed that too?

 

[King Belieal]

I know and have noticed slight fluctuations in stable coins. I have seen that happen in USDT and USDC. Don't know what factors caused that.

 

[Suba]

Although stablecoins are designed the same as USD, as traders we can observe several factors that cause stablecoin prices to fluctuate slightly against the USD, such as supply and demand factors for stablecoins, loss of trust or reduction in stablecoin holders, slippage, etc.

 

[riberet19]

Yes, this is normal, it usually happens, the exact reason I don't know, but sometimes they have a very large spread, but that hasn't happened for many years.

 

[Kera]

I have seen very insignificant volatility with stable coins. Always nothing really significant to be scary.

 

[Stardom22]

As the name suggests, the stable coins are very stable in such a way they actually maintain the actual value of the dollars. There is slightly deviation or change in prices which is very normal for that matter.

 

[Kross]

I have also observed the slight fluctuations in stable coins sometimes. But it is not significant at all.

 

[Nomad]

Stable coins are pegged with real currency and perform based on how that currency is performing, so it can go down.