The Synthetix USD (sUSD) stablecoin has fallen to a five-year low of $0.83, continuing a downward trend since early 2025 when it initially dropped to $0.96. The asset has struggled with instability, and on April 1, it was noted to be at $0.91, raising concerns about a potential 'death spiral' similar to the collapse of Terra's UST in 2022. The sustainability of sUSD relies on the value of its collateral, SNX tokens, and any significant decrease in SNX could lead to further unbacking of sUSD. However, Cork Protocol's co-founder Rob Schmitt stated that Synthetix's $30 million treasury could mitigate such risks. Meanwhile, Synthetix's founder Kain Warwick commented on the ongoing volatility due to transitions in the market mechanisms driving sUSD buying. He assured that there are systems in place to restore the peg as needed.

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