The post Solana Stablecoin USX Crashes to $0.10| Live Bitcoin News appeared on BitcoinEthereumNews.com. On December 26, USX dropped to 0.10, as liquidity dried The post Solana Stablecoin USX Crashes to $0.10| Live Bitcoin News appeared on BitcoinEthereumNews.com. On December 26, USX dropped to 0.10, as liquidity dried

Solana Stablecoin USX Crashes to $0.10| Live Bitcoin News

On December 26, USX dropped to 0.10, as liquidity dried up, but it has since recovered to 0.94, as Solstice Finance contributed to the emergency liquidity in the secondary markets. 

On December 26, USX on Solana crashed drastically to $0.10 in the secondary market due to a critical lack of liquidity.  

PeckShield Alert on X stated that the stablecoin dropped drastically because of the liquidity drainage. The security company immediately raised a red flag on the event, and Market participants witnessed one of 2024’s most extreme stablecoin depegs.

Source: PeckShield 

Liquidity Vanishes: What Triggered the Crisis?

Secondary markets were severely illiquid. The sell orders flooded the buy-side depth of decentralized exchanges, and the USX trading venues on Orca and Raydium were under extreme pressure.  

The price soon came out of the dollar peg. The destruction of liquidity triggered panic selling, and CoinGecko logged a new all-time low of $0.8285.  

Solstice Finance acted promptly over the crisis. The team published a statement on X responding to market issues and affirmed that the underlying collateral was not affected in any way.  

The net asset value and collateralized assets were rated as over 100 percent. Solstice remarked on X. Primary-market redemptions continued to operate at 1:1 ratios, and the team pointed out that the problem was secondary-market in nature.  

Emergency Liquidity Injection Stabilizes Peg

Market makers and Solstice Finance pumped in emergency liquidity. The intervention dragged USX back to an approximate $0.94 and the volume of trading increased 500 percent to $17 million in the recovery.  

Since that time, the stablecoin has rebounded around the 1.00 mark; at this time of day, USX is around 0.995, and the price movement has been just a 0.3 per cent decrease.  

Nonetheless, market weaknesses were revealed through the intraday swing. Prices fluctuated between 0.8285 and 1.01, which showed weakness in the secondary-market structure.  

You might also like: Galaxy CEO Novogratz Warns XRP, ADA Risk Irrelevance Without utility

Pattern of Stablecoin Instability Emerges

The incident is a reflection of previous depeg events of 2024. In April, Synthetix saw its sUSD drop below $0.70, and its founder, Kain Warwick, changed the name of his social account to kain. depeg.  

The XUSD of Stream Finance fell to $0.30 in November; the protocol said it had suffered a loss of $93 million, which was caused by problems with external fund managers.  

USX is radically different from such cases. There was no collateral damage or loss, and the depeg remained confined to trade venues.  

Solstice made a promise to receive third-party attestation and intends to restore market confidence. Independent verification reports will be published publicly.

Market observers identified the dependency in the secondary market. Retail users do not have any DEX liquidity, but institutional partners do.  

The episode on USX highlights the risks in the market of stablecoins. Collateral in itself will not keep prices stable; liquidity depth is also a key to keeping pegs.

Source: https://www.livebitcoinnews.com/solana-stablecoin-usx-crashes-to-0-10/

Market Opportunity
SecondLive Logo
SecondLive Price(LIVE)
$0.00004183
$0.00004183$0.00004183
+5.97%
USD
SecondLive (LIVE) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact [email protected] for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Trump Administration Aligned Regulators To Reduce Crypto Uncertainty and Enable Growth

Trump Administration Aligned Regulators To Reduce Crypto Uncertainty and Enable Growth

The Trump administration aligned U.S. crypto regulators in 2025 to reduce uncertainty and integrate digital assets with the financial system. The United States
Share
LiveBitcoinNews2025/12/28 16:30
Top 3 Trusted Platforms for Betting with BTC and USDT

Top 3 Trusted Platforms for Betting with BTC and USDT

Cryptocurrency betting has moved far beyond being a niche option for tech enthusiasts. Today, betting with BTC and USDT is a mainstream choice for players who value
Share
Coinstats2025/12/28 16:00
Jerome Powell’s Press Conference: Crucial Insights Unveiled for the Market’s Future

Jerome Powell’s Press Conference: Crucial Insights Unveiled for the Market’s Future

BitcoinWorld Jerome Powell’s Press Conference: Crucial Insights Unveiled for the Market’s Future The financial world, including the dynamic cryptocurrency market, often hangs on every word from the Federal Reserve. Recently, Jerome Powell’s press conference following the Federal Open Market Committee (FOMC) meeting concluded, leaving investors and analysts dissecting his remarks for clues about the future economic direction. This event is always a pivotal moment, shaping expectations for inflation, interest rates, and the overall stability of global markets. What Were the Key Takeaways from Jerome Powell’s Press Conference? During Jerome Powell’s press conference, the Fed Chair provided an update on the central bank’s monetary policy decisions and its economic outlook. His statements often reiterate the Fed’s dual mandate: achieving maximum employment and stable prices. This time was no different, with a strong emphasis on managing persistent inflation. Key points from the recent discussion included: Inflation Control: Powell emphasized the Fed’s unwavering commitment to bringing inflation back down to its 2% target. He reiterated that the fight against rising prices remains the top priority, even if it entails some economic slowdown. Interest Rate Policy: While the Fed’s stance on future interest rate adjustments was discussed, the path remains data-dependent. Powell indicated that decisions would continue to be made meeting-by-meeting, based on incoming economic data. Economic Projections: The updated Summary of Economic Projections (SEP) offered insights into the Fed’s forecasts for GDP growth, unemployment, and inflation. These projections help market participants gauge the central bank’s expectations for the economy’s trajectory. Quantitative Tightening (QT): The ongoing process of reducing the Fed’s balance sheet, known as quantitative tightening, was also a topic. This reduction in liquidity in the financial system has broad implications for asset prices. How Did Jerome Powell’s Remarks Impact Cryptocurrency Markets? The conclusion of Jerome Powell’s press conference often sends ripples through traditional financial markets, and cryptocurrencies are increasingly sensitive to these macroeconomic shifts. Digital assets, once thought to be uncorrelated, now frequently react to the Fed’s monetary policy signals. Higher interest rates, for instance, tend to make riskier assets like cryptocurrencies less attractive. This is because investors might prefer safer, interest-bearing investments. Consequently, we often see increased volatility in Bitcoin (BTC) and Ethereum (ETH) prices immediately following such announcements. The tightening of financial conditions, driven by the Fed, reduces overall liquidity in the system, which can put downward pressure on asset valuations across the board. However, some argue that this growing correlation signifies crypto’s increasing integration into the broader financial ecosystem. It suggests that institutional investors and mainstream finance are now paying closer attention to digital assets, treating them more like other risk-on investments. Navigating the Economic Landscape After Jerome Powell’s Press Conference For cryptocurrency investors, understanding the implications of Jerome Powell’s press conference is crucial for making informed decisions. The Fed’s policy trajectory directly influences the availability of capital and investor sentiment, which are key drivers for crypto valuations. Here are some actionable insights for navigating this environment: Stay Informed: Regularly monitor Fed announcements and economic data releases. Understanding the macroeconomic backdrop is as important as analyzing individual crypto projects. Assess Risk Tolerance: In periods of economic uncertainty and tighter monetary policy, a reassessment of personal risk tolerance is wise. Diversification within your crypto portfolio and across different asset classes can mitigate potential downsides. Focus on Fundamentals: While market sentiment can be swayed by macro news, projects with strong fundamentals, clear use cases, and robust development teams tend to perform better in the long run. Long-Term Perspective: Cryptocurrency markets are known for their volatility. Adopting a long-term investment horizon can help weather short-term fluctuations driven by macro events like Fed meetings. The challenges include potential continued volatility and reduced liquidity. However, opportunities may arise from market corrections, allowing strategic investors to accumulate assets at lower prices. In summary, Jerome Powell’s press conference provides essential guidance on the Fed’s economic strategy. Its conclusions have a profound impact on financial markets, including the dynamic world of cryptocurrencies. Staying informed, understanding the nuances of monetary policy, and maintaining a strategic investment approach are paramount for navigating the evolving economic landscape. The Fed’s actions underscore the interconnectedness of traditional finance and the burgeoning digital asset space. Frequently Asked Questions (FAQs) Q1: What is the Federal Open Market Committee (FOMC)? A1: The FOMC is the monetary policy-making body of the Federal Reserve System. It sets the federal funds rate target and directs open market operations, influencing the availability of money and credit in the U.S. economy. Q2: How do the Fed’s interest rate decisions typically affect cryptocurrency markets? A2: Generally, when the Fed raises interest rates, it makes borrowing more expensive and reduces liquidity in the financial system. This often leads investors to shy away from riskier assets like cryptocurrencies, potentially causing prices to decline. Conversely, lower rates can stimulate investment in riskier assets. Q3: What does “data-dependent” mean in the context of Fed policy? A3: “Data-dependent” means that the Federal Reserve’s future monetary policy decisions, such as interest rate adjustments, will primarily be based on the latest economic data. This includes inflation reports, employment figures, and GDP growth, rather than a predetermined schedule. Q4: Should I change my cryptocurrency investment strategy based on Jerome Powell’s press conference? A4: While it’s crucial to be aware of the macroeconomic environment shaped by Jerome Powell’s press conference, drastic changes to a well-researched investment strategy may not always be necessary. It’s recommended to review your portfolio, assess your risk tolerance, and consider if your strategy aligns with the current economic outlook, focusing on long-term fundamentals. If you found this analysis helpful, please consider sharing it with your network! Your insights and shares help us reach more readers interested in the intersection of traditional finance and the exciting world of cryptocurrencies. Spread the word! To learn more about the latest crypto market trends, explore our article on key developments shaping Bitcoin price action. This post Jerome Powell’s Press Conference: Crucial Insights Unveiled for the Market’s Future first appeared on BitcoinWorld.
Share
Coinstats2025/09/18 16:25