Will There Be a Second Terra (LUNA) Incident? This Stablecoin, Which Experienced a Second Depeg, Continues to Have Hard Times! Here Are the Details….

As you may recall, the synthetic USD (sUSD) stablecoin issued by Synthetix lost its peg to the dollar and fell below $1 in recent weeks.

However, the situation has not changed and the depeg in Synthetix-based stablecoin sUSD continues.

This is the stablecoin’s second decline in less than a year, reigniting concerns about the issuer’s stability mechanisms.

The recent decline of sUSD has been attributed to oversupply in the market, with Synthetix core developer Fenway saying that investors are dumping the asset in large quantities.

Synthetix founder Kain Warwick said the team has put in place new mechanisms to lock in the fixed price.

However, these measures did not work and the depeg in sUSD continued.

CoinMarketCap data shows the sUSD depeg deepening further, with sUSD trading at $0.694.

The Synthetix team has not been able to fully address the depeg and resolve the issue. The outlook for sUSD remains worrisome, making investors nervous.

Because sUSD is not the only stablecoin that has experienced a downturn. While Bitcoin (BTC) and its altcoins suddenly lost their peg to the dollar in 2022 and then collapsed, Terra’s algorithmic stablecoin TerraUSD (UST) continues to be remembered as one of the biggest downturns.

*This is not investment advice.