The post $sUSD Depegging Crisis Deepens: What’s Behind the Ongoing Slide? appeared on BitcoinEthereumNews.com.

The decentralized stablecoin $sUSD, issued by Synthetix, is experiencing a rapidly growing depegging crisis. After a concerning drop, the token is now at $0.8030, a full 5% down in the last 24 hours. This steady slide has resulted in us saying that the stablecoin is fast reaching a market cap of $25.46 million, which in U.S. dollar terms just yesterday was $0.9321. This depegging, of course, has traders and investors concerned, as stablecoins like $sUSD are supposed to maintain a 1:1 peg with the U.S. dollar. So what gives? Why is this happening? And, you know, what’s next? The Mechanics of sUSD and Its Sudden Fall $sUSD is a decentralized stablecoin that is supposed to track the value of the U.S. dollar and maintain a stable 1:1 peg with that currency. It is made using the synthetic asset mechanism of the Synthetix platform, where users put up $SNX or other assets as collateral in order to mint the stablecoin. Generally, a stablecoin like $sUSD should stay quite close to its peg, something which seems to be happening with it as of late. Nevertheless, beginning in mid-March 2025, $sUSD started to move away from its $1 familiar value. On April 9, 2025, the value of the stablecoin plummeted to approximately $0.8388, which signaled a dip of over 16% from where it was theoretically supposed to be. This steep decline was of course concerning and, after 20 days of dropping and not recovering, seemed to be trending steadily downward. ⚓️The depegging of the stablecoin $sUSD has intensified, currently trading at $0.8030, Why? According to market data, the depegging of $sUSD has worsened, with its current price at $0.803 — a 24-hour drop of 5.0%, bringing its market capitalization down to $25.46 million.$sUSD… pic.twitter.com/h3wC27MWcy — Followin (@followin_io) April 17, 2025 The value of…

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Filed under: News - @ April 18, 2025 5:25 am