Solana Stablecoin USX Plummets to $0.10 in Depeg Amid Liquidity Crunch
The USX stablecoin on Solana misplaced its greenback peg on December 26, collapsing to simply $0.10 on secondary markets.
This sudden drop, brought on by a extreme lack of liquidity, marks one of the vital excessive depegs for a serious stablecoin this yr.
Market Strain and Rapid Response
According to blockchain safety agency PeckShield, which raised an alert in regards to the occasion, the depeg was a direct results of a liquidity drain on buying and selling platforms.
The stablecoin’s developer, Solstice, responded shortly. In a press release posted on X, the group confirmed the difficulty was remoted to secondary markets, noting that the funds backing USX in its major system have been “totally unaffected and >100% collateralized.” They emphasised that 1:1 redemptions by way of their major market remained operational.
The state of affairs stabilized after Solstice and its market makers injected contemporary liquidity, pulling the value again to roughly $0.94. Despite this restoration, the transient crash established a brand new all-time low of $0.8285 for USX, as recorded by CoinGecko.
The stablecoin has since returned close to its $1.00 goal, presently buying and selling round $0.995. While the 24-hour worth change exhibits solely a minor 0.3% decline, the dramatic intraday swing from $0.8285 to a high of $1.01 highlights the volatility triggered by the liquidity shortfall.
A Recurring Challenge for Algorithmic Stablecoins
This incident is a reminder of the persistent fragility of sure stablecoin designs when confronted with secondary market pressures. It echoes different important depegs in 2025; for instance, the one in April the place Synthetix’s sUSD stablecoin fell beneath $0.70 following protocol modifications that altered its collateral mechanics. At the time, founder Kain Warwick darkly joked in regards to the state of affairs by renaming his social account to “kain.depeg.”
More not too long ago in November, Stream Finance’s XUSD stablecoin crashed to $0.30 after the protocol revealed a $93 million loss from an exterior fund supervisor.
The USX occasion differs in that its underlying collateral was not compromised, framing it purely as a secondary market liquidity failure. Meanwhile, Solstice has dedicated to acquiring a third-party attestation report, in what some market observers consider is an try to rebuild belief.
However, for buyers and the broader crypto group, these repeated occasions function a stark reminder of the dangers that stay even in stablecoins backed by verifiable belongings, the place market construction can generally fail earlier than the basics do.
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