Synthetix’s synthetic USD (sUSD) stablecoin has experienced another significant depeg, plunging below $1 in recent weeks. This follows a similar incident earlier this year and raises concerns about the stability mechanisms of the project. 
The cause? Overabundance of sUSD tokens, leading investors to sell en masse, according to Synthetix’s core developer, Fenway. Despite introducing new price-locking mechanisms, these efforts failed to restore the stablecoin peg. 
The depeg has further deepened, with sUSD now trading at a reduced value of $0.694. 
This mirrors the dramatic events witnessed in 2022 when crypto markets experienced a significant downturn. The collapse of Terra’s algorithmic stablecoin, TerraUSD (UST), serves as a stark reminder of the risks associated with unstable assets. 
The future of sUSD remains uncertain, adding to the anxieties of investors. **Please remember this is not financial advice.**