2026-01-15 10:24:41

The recent performance of the algorithmic stablecoin FRAX has indeed been somewhat outrageous. It was originally pegged to a price of $1, but now it has surged to 1.3, a 30-point increase. Such an inflated value is difficult to sustain in the long term.

From a market perspective, deviations from the pegged value are not uncommon, but such a large deviation is worth caution. When stablecoins start to show signs of de-pegging, it usually indicates that market sentiment is overheated, and bubbles are involved.

If you haven't participated in this rally, it might actually be an opportunity. The market often corrects itself back to rational levels—namely, the target price of 1. During this process, short positions could yield significant profits. Some people choose to go long at this stage, expecting continued upward movement; however, from a risk-reward standpoint, waiting for a pullback seems more cost-effective.

The core value of stablecoins lies in stability. Now that this characteristic has been compromised, the market will eventually have to provide an answer.

FRAX-30,93%

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GigaBrainAnon

· 01-15 10:49

Frax this time is really outrageous, daring to de-peg at 1.3? Doesn't that mean the significance of stablecoins is gone? --- Shorting opportunity? No, this is actually the biggest risk, maybe it can continue to surge. --- Wait a minute, there's a problem with this logic... De-pegging actually still rising? --- It's the old trick of algorithmic stablecoins again, always the same. --- Back to 1? Is that likely? I'm not sure.

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SigmaBrain

· 01-15 10:34

1.3 Dare to buy? This is the rhythm of a bloodbath. --- The recent overvaluation of FRAX is ridiculous; shorting and waiting for a pullback is safer. --- The stablecoin has de-pegged by thirty points; it's definitely going to crash. --- Those who didn't get in have actually made money; just watching is fine. --- I'm just waiting to bottom out around $1, don't rush. --- Such an exaggerated de-pegging, institutions are definitely cutting the leeks. --- Algorithmic stablecoins are just like that, how reliable are they? --- Market correction is inevitable; short and wait for the scoop. --- Can thirty points be maintained? What a joke. --- This time, FRAX has damaged trust; it will be difficult to recover afterward.

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governance_lurker

· 01-15 10:28

1.3 has already depegged, and you still dare to call it a stablecoin, hilarious Another "the market will correct," how many times have I heard that Shorting for profit this round? Hold on, let's wait and see I only saw this article after everyone had already jumped in, it’s too late The feeling of stablecoins breaking is truly intense That's why I never touch algorithmic stablecoins A correction is highly probable, but when it will happen is the question FRAX has been ridiculously aggressive this time, 30 basis points, no joke, right? Waiting for an opportunity to short? Better to just go neutral Why is it always "bubble" this and that, every time it’s the same story In fact, we should have been alert to algorithmic stablecoins a long time ago

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