Solana Stablecoin USX Plummets to $0.10 Amid Liquidity Shock

USX, a Solana-based stablecoin, briefly depegged to $0.10 due to a liquidity crisis on secondary markets. The protocol's collateral remained intact, and the price recovered after liquidity was injected.

The Solana-based stablecoin USX experienced a dramatic depegging event on December 26, 2025, with its price plunging as low as $0.10 on secondary markets due to a sudden liquidity drain. The incident was triggered by heavy sell pressure on decentralized exchanges like Orca and Raydium, overwhelming available liquidity and causing the price to disconnect from its $1 peg. Despite the sharp drop, the protocol's underlying collateral remained secure and over 100% collateralized, with 1:1 redemptions continuing for authorized partners. The depeg was not caused by a protocol or collateral failure but by a lack of immediate liquidity, highlighting the importance of both collateral and market depth for stablecoin stability. Solstice, the team behind USX, responded by injecting fresh liquidity into affected pools, which helped the price recover to around $0.94. The event underscored the risks of thin liquidity in stablecoin markets and sparked renewed concerns about liquidity management and user trust during periods of market stress.