The recent drop in the price of the stablecoin sUSD from the Synthetix project once again highlights the serious risks algorithmic stablecoins still face, despite their high potential. These stablecoins, designed without direct asset backing, were once considered a significant innovation in the DeFi space. However, according to CoinMarketCap data, as of April 2025, out of the total $234 billion market value of stablecoins, only about $458 million, equivalent to 0.2%, belongs to algorithmic examples. This gap reflects widespread user distrust that has increased following the collapse of the UST project by Luna in 2022. In the latest case, the stablecoin sUSD, supported by Synthetix and relying on the SNX token and Chainlink data, had a price of around $0.79 by late March 2025 and has yet to return to the $1 level. The main reason for this decline was the withdrawal of a liquidity provider from the sBTC/wBTC pool on the Curve platform, creating significant selling pressure. Kain Warwick, the founder of Synthetix, has announced a new staking mechanism for sUSD has been implemented, but it currently lacks a suitable user interface, and the final version will be released soon. He warned that if incentives prove ineffective, stricter measures will be taken to enforce user pool participation. Alongside technical challenges, stringent regulations such as the MiCA laws in the European Union also add increased pressure on projects. These regulations, effective from June 2024, have set stricter standards for the release of stablecoins. You can view the live, real-time prices of all tokens and cryptocurrencies on the Momentary Price page for digital currencies.
