Anzen’s USDZ Stablecoin Experiences Significant Depeg Amid High Volatility
Anzen USDz (USDZ) faces significant depeg issues amid high volatility.
- USDZ, a real-world asset-backed stablecoin on the Base network, is experiencing price turbulence as its supply exceeds its market cap.
- The stablecoin has struggled to maintain its peg to the U.S. dollar since December 2024, dropping to an all-time low of $0.82 on March 7 before recovering to $0.95.
- Current market cap of USDZ is $116 million, with a circulating supply of 121.6 million tokens.
- Cash and cash equivalents constitute only 5.27% of reserves, according to Wu Blockchain.
- Despite these challenges, Anzen's decentralized finance (DeFi) total value locked (TVL) reached an all-time high of $116.56 million, making it the largest RWA protocol on Base.
- No official response from Anzen regarding the depegging issues.
Historical Context of Depegging
- USDZ joins other stablecoins that have faced similar issues.
- TerraUSD (UST) collapsed in May 2022, losing its peg with a market cap near $18 billion, falling to $0.10.
- Another stablecoin, DEI by Deus Finance, also depegged in May 2022, dropping to $0.50 with a market cap of $88 million.
