A new one has been added to the depeg (stablecoin losing its peg to $1) events, which have been increasing in number recently in the cryptocurrency market.
Synthetix's decentralized stablecoin sUSD lost its peg to the dollar and fell below $1, The Block reported.
This decline was due to increased selling on decentralized exchanges, with sUSD falling below the stable price of $1 to as low as $0.92.
sUSD price later recovered to $0.96.
Chaos Labs, risk manager for the Aave lending protocol, stated that the depeg on sUSD was triggered by a withdrawal from the sBTC/wBTC liquidity pool by a major liquidity provider on the Curve decentralized exchange.
As the user continued to sell sUSD, it caused the price to drop to as low as $0.92.
The depeg experienced in sUSD was also reflected in the price of Synthetix (SNX). At this point, the SNX price, which has fallen in recent hours, continues to trade at $ 2.67.
*This is not investment advice.
