Solana Stablecoin USX Plummets to $0.10 in Depeg Amid Liquidity Crisis

USX suffered one of the sharpest stablecoin depegs of 2025, falling to $0.10 before market makers restored liquidity.

The USX stablecoin on Solana lost its dollar peg on December 26, collapsing to as low as $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 tension and quick response

This was reported by blockchain security company PeckShield increased After a warning about the event, the depeg was a direct result of a liquidity loss on trading platforms.

The stablecoin’s developer, Solstice, responded quickly. In a statement on X, the team confirmed the issue was isolated to the secondary markets, noting that the funds backing USX in the primary system were “completely unaffected and >100% collateralized.” They emphasized that 1:1 refunds via their primary market remained operational.

The situation stabilized after Solstice and its market makers injected new liquidity, bringing the price back to around $0.94. Despite this recovery, the brief crash set a new all-time low of $0.8285 for USX, as recorded by CoinGecko.

The stablecoin has since returned close to its $1.00 target and is currently trading around $0.995. While the 24-hour price change shows only a small decline of 0.3%, the dramatic intraday swing from $0.8285 to a high of $1.01 highlights the volatility caused by the liquidity shortage.

A recurring challenge for algorithmic stablecoins

This incident is a reminder of the continued vulnerability of certain stablecoin designs when faced with secondary market pressures. It mirrors other key lows in 2025; for example, the one in April where Synthetix’s sUSD stablecoin fell below $0.70 after protocol changes that changed collateral mechanisms. Founder Kain Warwick made dark jokes about the situation at the time 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 exposed a $93 million loss from a third-party fund manager.

The difference with the USX event is that the underlying collateral was not compromised, so it is considered purely a secondary market liquidity failure. Meanwhile, Solstice has committed to obtaining a third-party attestation report, in what some market observers say is an effort to rebuild trust.

For investors and the broader crypto community, however, these repeated events serve as a stark reminder of the risks that persist even in stablecoins backed by verifiable assets, where market structure can sometimes fail before fundamentals do.