USX suffered one of 2025’s sharpest stablecoin depegs, plunging to $0.10 before market makers restored liquidity.
The USX stablecoin on Solana lost its dollar peg on December 26, collapsing to just $0.10 on secondary markets.
This sudden drop, caused by a severe lack of liquidity, marks one of the most extreme depegs for a major stablecoin this year.
Market Strain and Rapid Response
According to blockchain security firm PeckShield, which raised an alert about the event, the depeg was a direct result of a liquidity drain on trading platforms.
The stablecoin’s developer, Solstice, responded quickly. In a statement posted on X, the team confirmed the issue was isolated to secondary markets, noting that the funds backing USX in its primary system were “entirely unaffected and >100% collateralized.” They emphasized that 1:1 redemptions through their primary market remained operational.
The situation stabilized after Solstice and its market makers injected fresh liquidity, pulling the price back to approximately $0.94. Despite this recovery, the brief crash established a new all-time low of $0.8285 for USX, as recorded by CoinGecko.
The stablecoin has since returned near its $1.00 target, currently trading around $0.995. While the 24-hour price change shows only 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 certain stablecoin designs when faced with secondary market pressures. It echoes other significant depegs in 2025; for example, the one in April where Synthetix’s sUSD stablecoin fell below $0.70 following protocol changes that altered its collateral mechanics. At the time, founder Kain Warwick darkly joked about the situation by renaming his social account to “kain.depeg.”
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More recently in November, Stream Finance’s XUSD stablecoin crashed to $0.30 after the protocol revealed a $93 million loss from an external fund manager.
The USX event differs in that its underlying collateral was not compromised, framing it purely as a secondary market liquidity failure. Meanwhile, Solstice has committed to obtaining a third-party attestation report, in what some market observers believe is an attempt to rebuild trust.
However, for investors and the wider crypto community, these repeated events serve as a stark reminder of the risks that remain even in stablecoins backed by verifiable assets, where market structure can sometimes fail before the fundamentals do.
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