Synthetix’s sUSD Stablecoin Drops Below Peg, Spark Concerns About Stability

Synthetix’s synthetic USD stablecoin, sUSD, has experienced a significant drop below its $1.00 peg, plummeting as low as $0.83 before rebounding slightly. This depeg marks the second instance of instability for the stablecoin in less than a year, raising questions about the stability mechanisms of its issuer, Synthetix. 2023 saw a similar decline due to a large liquidity provider dumping sUSD into Curve, which contributed to market volatility.