After experiencing a de-pegging event in May 2024, the Synthetix (SNX)-based stablecoin sUSD has once again lost its peg to the dollar. This incident saw sUSD fall below $1 and prompted renewed concerns about the project’s stability. While exact reasons for this latest occurrence remain unclear, some experts believe excessive supply in the market, particularly within Curve’s DAI-USDC-USDT-sUSD pool, played a significant role. Fenway, a key contributor to Synthetix, suggests that an imbalance in sUSD supply contributed to its de-pegging. This is further supported by reports suggesting investors actively selling sUSD. Similar to the May 2024 incident, where increased sales on decentralized exchanges triggered a de-peg, this latest event shows a recurring pattern of instability for sUSD. However, it’s important to note that Synthetix founder Kain Warwick recently sold over 90% of his Ethereum (ETH) holdings and significantly increased his SNX position. This change in portfolio allocation may also be contributing to the recent de-pegging events. The stability mechanism updates introduced by Synthetix could potentially influence sUSD’s future performance, and further analysis is needed to ascertain its long-term impact on the project’s viability.