As a stablecoin, the USDP price should not deviate from $1 too much. However, in May 2021, the stablecoin hit a high of $1.52. This was around the time PayPal was rumored to be in talks about launching its own stablecoin with several potential partners, including Paxos Trust Company. It’s possible that demand for the stablecoin could’ve risen ahead of its supply, causing the stablecoin to move off its peg. This is because Ethereum transactions can settle within minutes versus bank transfers that take days to settle.
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