MIM + Its Peg
How has MIM performed at holding/regaining its peg over the past few weeks. Is MIM depegging correlated with the price of other stablecoins, especially UST?
There are stablecoins, and multiple coins available today, they are one of the main cogs in cryptoverse today. The main feature of a stable coin is that it is pegged to US Dollar in other words, unlike other cryptocurrencies stable coin's price doesn't fluctuate, theoretically they should always be worth 1 USD per coin and should not be volatile in nature. Out of all stablecoins, Tether's USDT, and USDC are the most popular among traders and investors. Since recent UST is also gaining a lot of traction and UST adoption is growing rapidly.
What is MIM
Magic Internet Money or MIM is also a stable coin that gained popularity thanks to Abracadabra, (YEAH!! lots of magics and spells).
In this analysis, we're going to analyse the behaviour of stablecoins. How well they have maintained their peg against US Dollar in the last 21 days. Specially MIM and UST.
It clearly shows that USDC and USDT both haven't fluctuated much during the last 21 days which means they haven't de pegged much but both UST and MIM seem to be fluctuating relative to USD. Specially MIM has lost almost 3% on 27th of January at 22:00H. UST also had some 'volatility' compared to USDC/USDT during the last 21 days so, it would be better to compare UST and MIM alone.
- This shows that when the UST price hit below the 1 USD mark there's a high chance MIM price also go below the 1 USD mark but NOT vice versa
> - When considering USDC, USDT, UST, and MIM, MIM is more correlated with UST than the other two. > - MIM had depegged nearly 3% from USD on 27th of January at 22:00H UTC. > - Since January 27th MIM was below the 1 USD mark/peg on most occasions. > - Although UST showed some 'volatility' around the 1 USD mark it hasn't depegged as much as MIM since the 27th of January 2022 > - But it had gone above 1 USD quite frequently before the 27th of January. . - When UST loses its peg and goes below the 1 USD mark there's a high chance that MIM also goes below the 1 USD mark but not vice versa during last 21 days.
Here in this case MIM's deviation from UST and USD are quite similar after the 27th of January which means, MIM's depeg is more significant than the UST.