sUSD peg reached 0.68 USD

Synthetix USD (sUSD) – the native stablecoin of the Synthetix protocol – has just continued to lose its peg, falling to a record low of below 0.7 USD.

However, Synthetix representatives emphasize that this is not the first time this asset has faced significant pressure and that some risk management measures have now been implemented.

“Synthetix and sUSD have survived many downturns and periods of strong volatility of stablecoins; this is not the first endurance test.”

sUSD decreased by more than 30%

sUSD is a stablecoin backed by cryptocurrency assets. Users must lock SNX tokens to issue sUSD, therefore the stability of sUSD depends heavily on the market value of the Synthetix token (SNX).

As of the time of writing, sUSD is trading around 0.73 USD – about 30% lower than the 1:1 ratio with the USD, according to data from CoinMarketCap. Previously, sUSD had dropped to a low of 0.66 USD before recovering slightly to 0.7 USD.

sUSD price chart | Source: CoinMarketCapDuring the same period, the price of SNX remained relatively stable, only decreasing by about 0.5% over the week, currently trading at 0.63 USD. However, considering the general downward pressure on the crypto market, the price of SNX has lost about 25% over the past 30 days.

The spokesperson stated that this short-term volatility of sUSD is due to “structural adjustments” following the implementation of SIP-420 - a proposal aimed at transferring debt risk from stakers to the protocol.

They stated that Synthetix currently has plans to cope in the short, medium, and long term:

The founder of Synthetix – Kain Warwick – stated that the current volatility primarily stems from the fact that the main driving force behind the demand for purchasing sUSD has been eliminated.

“New mechanisms are being implemented, but during the transition period, volatility is unavoidable.”

“It is important to note that sUSD is not an algorithmic stablecoin (, but rather a pure collateralized stablecoin backed by cryptocurrency assets. The pegged exchange rate may deviate, but there are still mechanisms in place to pull the price back to the correct ratio if it exceeds or falls below the pegged price threshold,” Warwick added.

Previously, sUSD also experienced a prolonged instability since the beginning of 2025. Specifically, on January 1, sUSD dropped to 0.96 USD and only recovered to 0.99 USD at the beginning of February. In February, the price continued to fluctuate before showing signs of stabilizing again in March.

You can view the coin price here.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do thorough research before making decisions. We are not responsible for your investment decisions.

Itadori