decoupling

According to Coingecko data, Curve's stablecoin crvUSD has experienced a slight de-pegging, dropping to a low of 0.9858 USD today, currently reported at 0.9928 USD.

According to market information, the stablecoin USDf under Falcon Finance has experienced a slight de-pegging, with a lowest quote of 0.9871 USD and a current quote of 0.9896 USD.According to the project's official website, USDf currently has a circulating market cap of 2.06 billion USD, with supported asset value of 2.43 billion USD.

Since mid-2025, Bitcoin has begun to decouple from the global M2 money supply (i.e., the total amount of money in circulation in the market, including cash, demand deposits, time deposits, etc.), and this trend became more pronounced in early 2026. Historically, the correlation between the two has been the basis for bullish predictions, but analysts are now sharply divided on this phenomenon.Fidelity Digital Assets' January report maintains an optimistic outlook, believing that as the global monetary easing cycle begins and the Federal Reserve's QT plan ends, the M2 growth rate will continue to rise in 2026, which will be favorable for Bitcoin prices. Analyst MartyParty predicts that Bitcoin prices will rebound to catch up with M2 growth.However, Mister Crypto points out that the decoupling of Bitcoin prices from M2 typically signals a market top, followed by a 2-4 year bear market. The founder of Capriole Investments believes that the decoupling reflects the risk of quantum computing breaking Bitcoin's encryption. Despite the uncertainties, investors still view Bitcoin as a long-term store of value.

The stablecoin USX on the Solana chain has experienced severe fluctuations in the secondary market, once decoupling and dropping to $0.1, allegedly due to a depletion of liquidity.The Solstice team responded by stating that the decoupling of USX on the Solana chain is a secondary market liquidity issue. The team and market makers are working to resolve this and are injecting liquidity into the secondary market to ensure market stability. "The net asset value of USX's underlying assets and the assets held in custody by Solstice are completely unaffected, and the collateralization rate exceeds 100%. We have now requested a third party to issue a supplementary certification report immediately, and the team will release it as soon as the report is completed."The team emphasized that this is purely a secondary market liquidity issue, liquidity has been injected to restore stability, and the current price has risen to $0.94, with the primary market operating normally for 1:1 redemptions.

According to Bloomberg, Bitcoin is heading towards its fourth annual decline in history, and this is the first time this downturn has occurred without being accompanied by a major scandal or a systemic collapse in the industry. This decline comes as institutional participation expands, the regulatory environment matures, and the crypto industry receives public support from U.S. President Trump, which has surprised the market.Since hitting an all-time high above $126,000 in early October, Bitcoin has quickly retraced, with current trading volumes low and investors continuously withdrawing from related products. Data shows that since October 10, there has been a net outflow of over $5.2 billion from Bitcoin spot ETFs listed in the U.S., the market depth has decreased by about 30% from this year's peak, and there is a noticeable lack of willingness in the derivatives market to bet on a rebound.Unlike previous bear markets, this round of decline was not triggered by exchange collapses, regulatory crackdowns, or systemic risk events. The previous three annual declines occurred during the Mt. Gox collapse (2014), the ICO bubble burst (2018), and the industry crisis triggered by the FTX incident (2022). Analysts point out that Bitcoin has shown signs of "decoupling" from the U.S. stock market during this decline. This year, the S&P 500 index has repeatedly hit new highs, with an increase of about 16% year-to-date, and tech stocks have performed particularly well, while Bitcoin continues to face pressure.Apollo Crypto stated that despite numerous positive factors, the price lacks sustained follow-through, reflecting a clear weakening of market sentiment. Overall, this round of Bitcoin adjustment appears more like a reallocation of funds and a decline in risk appetite against a high backdrop, rather than a panic sell-off triggered by a single event.

On-chain data shows that the Yala stablecoin YU has significantly de-pegged, currently dropping to $0.44 on the Ethereum mainnet and $0.368 on Solana.According to previous news from ChainCatcher, the Yala stablecoin YU experienced suspicious lending situations similar to USDX over the weekend. Yala responded yesterday, stating that they have noted the community's concerns regarding the stablecoin YU and are conducting an investigation.

Trading StrategyIn-depth investigation reveals that the fundamental reason for the de-pegging of Stream XUSD is not the Balancer hacking incident, but rather the failure of the Delta neutral strategy during the historic liquidation on October 11.Although Stream claims to adopt a Delta neutral hedging strategy (1:1 configuration of spot and short positions), during the extreme volatility on October 11, the exchange's automatic deleveraging (ADL) system forcibly liquidated its positions, breaking the original hedging balance. This led to a direct loss of Stream's principal, which in turn triggered the de-pegging of XUSD.Underlying issues include: a severe lack of transparency (only $150 million out of $500 million TVL visible on-chain), high-risk off-chain trading strategies (including selling volatility strategies), and excessive leverage (recursive borrowing through Elixir). Analysis indicates that Stream is merely one of the first victims to surface.Given that October 11 was an unprecedented extreme liquidation event, it is expected that more DeFi projects will face similar issues in the future, highlighting the urgent need for stricter risk transparency standards in the crypto market.

Market CoinGecko data shows that Staked Stream USD (XUSD) has expanded its de-pegging to 62.1%, currently priced at $0.5504.

ChainCatcher news, the Bank of Korea released a report on Monday warning about won-denominated stablecoins, emphasizing that private issuers lack the institutional trust necessary to maintain currency stability, and suggesting that stablecoin issuance should be led by traditional banks.The central bank pointed out that currency stability relies on trust rather than technology, citing examples of stablecoin de-pegging risks, such as the Terra/Luna collapse and USDC dropping to $0.88 during the Silicon Valley Bank crisis. The report particularly emphasized that non-U.S. dollar stablecoins face more severe risks due to limited circulation. Despite the warnings, financial innovation in South Korea continues to advance. In September, digital asset custody firm BDACS partnered with Woori Bank to launch Korea's first fully compliant won-backed stablecoin, KRW1, which is built on the Avalanche blockchain.

ChainCatcher news, Binance issued a statement in response to the market volatility triggered by global macro events from 04:50 to 06:00 Beijing time on October 11. The official statement indicated that the overall crypto market experienced a sharp decline due to concentrated sell-offs by institutions and retail investors. Binance confirmed after a thorough review that the core contract and spot matching engine and API trading remained normal, with only some modules experiencing brief technical issues after 05:18 Beijing time on October 11, leading to certain assets becoming unpegged.For users affected by this incident, Binance has completed compensation within 24 hours, amounting to approximately $283 million, primarily covering collateral liquidation losses caused by the unpegging of USDE, BNSOL, and WBETH. Additionally, Binance will provide compensation to users who suffered losses due to delays in internal transfers and Earn product redemptions.Regarding the extreme low prices observed in certain spot trading pairs, Binance explained that this was mainly caused by historical limit orders being triggered under one-sided liquidity, UI display precision issues, and other reasons, rather than a system error. The official commitment is to further optimize the interface display and liquidity mechanisms, and to continuously provide updates on compensation progress.Binance reminds users that the current crypto market is highly volatile, and trading should maintain risk control and reasonable position allocation.

ChainCatcher news, Venus Protocol stated on social media that some Venus users were affected by the decoupling of the WBETH price during market liquidation.Venus Labs will compensate verified users who suffered losses due to the WBETH decoupling issue that occurred from 5:36 to 6:16 Beijing time on October 11, 2025, through the protocol risk fund.

ChainCatcher news, Binance has released an announcement regarding the handling of the decoupling events of USDE, BNSOL, and WBETH, as well as risk control optimizations.The announcement states that Binance has completed a comprehensive review of this incident and will compensate all affected contract, leverage, and borrowing users within 72 hours. The compensation will be automatically credited to the relevant user accounts.Specific compensation plan:All affected contract, leverage, and borrowing users who held USDE, BNSOL, and WBETH as collateral and were impacted by the decoupling between 05:36 and 06:16 (UTC+8) on October 11, 2025, will receive a differential compensation. The specific amount will be calculated based on the difference between the market price at 08:00 (UTC+8) on October 11, 2025, and the liquidation price.If a user's situation does not fall within the above scope, they can directly contact Binance customer service for manual assistance, obtain the form link to submit an application, and we will handle it on a case-by-case basis.In addition, to prevent similar situations from occurring again, Binance will further strengthen risk control and adjust relevant parameters, specifically as follows:Add the redemption price to the price index weights of BNSOL, WBETH, and USDE;Introduce a minimum price limit for the USDE index to enhance price stability;Increase the frequency of risk control parameter reviews to ensure dynamic adjustments based on market conditions.

ChainCatcher message, Binance announced on October 11, 2025, confirming that the three tokens USDE, BNSOL, and WBETH recently experienced a price decoupling issue, resulting in some users' assets being forcibly liquidated.The Binance team is currently conducting a comprehensive review of the affected users' situations and related compensation measures, while also strengthening risk management controls to prevent similar incidents from occurring again.

ChainCatcher news, according to market news, the Yala stablecoin YU once experienced a decoupling, with DEX Screener data showing that the price fell to a low of $0.2074, and has now rebounded to $0.8295.

ChainCatcher news, according to Lookonchain monitoring, since the FDUSD decoupling, Wintermute has transferred 75 million FDUSD to First Digital Labs.Lookonchain states that Wintermute likely purchased FDUSD at a discounted price during the decoupling and exchanged it 1:1 through First Digital, making a profit from it.