The Solana-based stablecoin USX experienced a dramatic depegging event on December 26, 2025, briefly collapsing to as low as $0.10 on secondary markets before partially recovering. The incident was triggered by a sudden and severe liquidity drain, not by a protocol exploit or collateral failure.
Blockchain security firm PeckShieldAlert first flagged the sharp price dislocation, noting that USX traded far below its $1 target. According to on-chain monitoring data, liquidity thinned rapidly in secondary trading venues. As liquidity providers exited, sell pressure overwhelmed the available buy-side depth, causing an extreme price swing. Such events are more common in thin or fragmented markets where even modest sell orders can cause outsized movements.
In response, Solstice, the issuer associated with USX, stepped in to stabilize the market. The team injected fresh liquidity into secondary markets shortly after the incident. Following this intervention, USX rebounded to around $0.94, marking a rapid recovery from the intraday low, though still below full parity.
Solstice issued a public statement emphasizing that the issue was isolated to secondary market trading and that primary market functions, including 1:1 redemptions, continued to operate normally. The firm stated that the net asset value backing USX remained unaffected and that the stablecoin maintains a collateralization ratio exceeding 100% of the circulating supply. No custodied assets were compromised. The issuer described the episode as a "liquidity mismatch rather than a solvency issue" and announced plans for an additional third-party attestation to reinforce confidence.
The event serves as a critical reminder of the persistent risks in the expanding stablecoin sector. It highlights that stablecoin stability depends not only on robust collateral but also on continuous and deep liquidity. Analysts note that as more projects launch stablecoins across different chains, similar events may occur due to thin liquidity, fragmented venues, and fast-moving market sentiment.
