Solana’s USX Stablecoin briefly plunged to just $0.10 following a severe liquidity crunch, before rapidly recovering after intervention by its issuer, Solstice Finance. USX, a US dollar-pegged stablecoin issued by Solstice Finance on the Solana blockchain, experienced a dramatic price drop on December 26. Following a liquidity drain on Solana-based decentralized exchanges like Orca and Raydium, the stablecoin briefly fell to as low as $0.10, prompting panic among traders and renewed scrutiny of stablecoin resilience. Solstice and its partners quickly responded, injecting new liquidity to stabilize the asset.
As of the latest data, USX is trading around $0.995, nearly back to its intended $1 peg. The drop occurred only in secondary markets, while primary systems and collateral remained fully secure and over 100% backed. This marks one of 2025’s most dramatic stablecoin depegs, reigniting concerns over systemic risks in decentralized finance. The Solstice team can confirm the underlying NAV and the custoded assets backing USX on the Solstice side remain entirely unaffected and >100% collateralized.
This is purely a secondary market liquidity issue that both the Solstice team and our market makers are addressing immediately. They also emphasized that institutional partners with permissioned access continued to redeem at face value, and that internal products like eUSX and YieldVaults were unaffected by the volatility. USX’s depeg adds to a growing list of stablecoin incidents in 2025, raising red flags about liquidity infrastructure across decentralized finance. Previous examples this year include sUSD falling below $0.70 in April after protocol changes at Synthetix.
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