GS Research analysts examine the major drop in cryptocurrency prices and how digital asset markets have been dominated by volatility in stablecoins (cryptocurrencies intended to be pegged 1:1 with fiat currencies, most commonly the US Dollar). Two prominent “algorithmic” stablecoins, Terra USD and Neutrino USD, have de-pegged (“broke the buck”). Like fixed exchange rates in traditional finance, algorithmic stablecoins are vulnerable to speculative attacks. They also face competitive threats from other forms of public and private money, similar to other assets in earlier experiments with private money in US history.