USX Briefly Collapses on Solana After Liquidity Drain
The post USX Briefly Collapses on Solana After Liquidity Drain appeared on BitcoinEthereumNews.com.
Solana stablecoin USX saw sharp price swings from low liquidity, then stabilized following market maker action. A sharp price swing drew attention across Solana markets after USX lost its dollar peg. The stablecoin traded far below one dollar on some venues within minutes. Data showed thin liquidity and rapid selling across decentralized exchanges. The event unfolded quickly and then partially reversed after intervention. Market analysts tracked the movement closely due to recent stablecoin growth. USX Depeg Triggered by Secondary Market Liquidity Drain USX experienced a sudden depeg on Solana during early trading hours. On-chain data showed prices falling to nearly ten cents on select pools. The drop followed a rapid exit of liquidity from secondary market venues. #PeckShieldAlert The stablecoin $USX on #Solana suffered a temporary depeg, dropping to $0.1 on secondary markets due to a liquidity drain. The peg was subsequently restored to $0.94 after @solsticefi injected liquidity. https://t.co/cG6oHm33zi pic.twitter.com/wYKLZLqI4v — PeckShieldAlert (@PeckShieldAlert) December 26, 2025 As liquidity thinned, even small trades caused steep price changes. No protocol exploit or smart contract failure was reported during the decline. The disruption remained limited to decentralized exchange trading. Primary issuance and redemption systems continued to operate without interruption. Arbitrage routes became constrained due to fragmented liquidity across pools. This condition increased volatility and delayed price recovery. Similar dynamics have occurred during past stress events in thin markets. Solstice Responds with Liquidity Injections and Assurances Solstice Finance acknowledged the market volatility soon after detection. The team confirmed collateral backing USX remained unchanged throughout the event. They stated the stablecoin was overcollateralized during the entire period. Additional liquidity was deployed to stabilize secondary trading markets. Subsequently, prices recovered to near ninety four cents following the intervention. Solstice also requested an updated third-party attestation report. The firm said the report would confirm asset balances…
Filed under: News - @ December 26, 2025 12:21 pm