sUSD depeg, explained: Why Synthetix’s stablecoin fell below $0.70
In a significant and concerning event in the cryptocurrency space, sUSD, the native stablecoin of the Synthetix protocol, saw its value plummet to $0.68 on April 18, 2025.
This drop represents a dramatic 31% deviation from its intended peg of 1:1 with the US dollar, a threshold that is fundamental to the concept of stablecoins. As the name implies, stablecoins are designed to maintain a stable price, which is crucial for their role as a reliable store of value within decentralized finance (DeFi) applications.
For stablecoins like sUSD, maintaining this price stability is essential for ensuring confidence in their usage. However, the steep drop in sUSD’s value sent shockwaves through the crypto community, creating an atmosphere of uncertainty.
The question arises: How did this once-stable digital asset fall below its peg, and why does this matter