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.
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.
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.”
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.
