Anzen’s USDZ Stablecoin Depegs – Is Another Collapse Coming?

Real-world asset-backed stablecoin Anzen USDz (USDZ) has been struggling with high volatility and shows signs of a significant depeg.

USDZ, an RWA-backed stablecoin by Anzen on Base network, is seeing high price turbulence as its supply grew above its market cap.

USDZ has struggled to keep its peg to the U.S. dollar since December 2024. On March 7, the asset dropped to an all-time low of $0.82 but soon recovered to $0.95. It has been consolidating at this price zone over the last 24 hours.

The RWA-backed stablecoin has a market cap of $116 million while its circulating supply grew to 121.6 million tokens, causing the depeg.

Wu Blockchain said USDZ was backed by Circle Ventures and was initially funded with $122 million in cash, overcollateralized RWAs, and credit portfolios. “However, cash and cash equivalents account for only about 5.27% of the reserves,” the X post reads.

Despite the recent depeggings, Anzen’s decentralized finance (DeFi) total value locked (TVL) reached an all-time high of $116.56 million, making it the largest RWA protocol on Base, according to data from DefiLlama.

Anzen hasn’t addressed the depegging issues yet.

USDZ Is Not The First to Depeg

USDZ is the latest stablecoin to depeg, but it’s not the first.

TerraUSD (UST) is the largest stablecoin to have ever collapsed. In May 2022, UST lost its peg to the U.S. dollar and had a market capitalization of roughly $18 billion. The algorithmic stablecoin’s price plunged to $0.10.

The fall of UST sent shockwaves through the whole industry and became a significant reason for the start of a bear market.

Another algorithmic stablecoin, DEI, developed by Deus Finance, was also depegged in May 2022. Before falling to $0.50, DEI had a market cap of $88 million.

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