Synthetix Stablecoin sUSD Falls to Five-Year Low of $0.83
Synthetix USD (sUSD) has lost its USD peg, dropping to a five-year low of $0.83, raising concerns among investors. The stablecoin's value has shown significant instability since early 2025.
- On January 1, sUSD fell to $0.96, briefly recovering to $0.99 by February.
- Prices remained volatile in February before stabilizing in March.
- A notable drop occurred on April 10 when sUSD hit $0.83.
sUSD is a crypto-collateralized stablecoin backed by Synthetix (SNX) tokens, making it reliant on SNX market performance. Rob Schmitt, co-founder of Cork Protocol, highlighted risks of a "death spiral" similar to Terra's UST collapse in 2022, although he noted key differences in collateralization.
Despite concerns, Schmitt suggested a collapse like Terra's is unlikely due to Synthetix's $30 million treasury, which covers nearly half of the outstanding sUSD debt. This treasury could stabilize sUSD in an unwinding scenario. Synthetix founder Kain Warwick attributed previous depegging events to changes in buying mechanisms and acknowledged ongoing volatility during transition periods.