Apyx’s apxUSD stablecoin briefly fell to 93 cents on June 4, 2026, deviating from its intended $1 peg as the broader cryptocurrency market faced significant downturns.
The decline in apxUSD’s value coincided with a sharp drop in Bitcoin, which fell below $63,000 at one point. This instability in the market has raised concerns about the reliability of stablecoins, particularly those backed by equity rather than cash.
apxUSD is primarily supported by preferred equity from digital asset treasury firms, specifically through Strategy’s STRC shares, which are valued at $100 par. Apyx collects dividends from these shares and distributes the yield to holders of its yield-bearing token, apyUSD.
However, the reliance on preferred equity means that fluctuations in the value of STRC can directly impact apxUSD. When STRC trades below its par value, the reserves backing apxUSD decrease in market value, resulting in volatility.
“This is not a bug, it is the expected behavior of a stablecoin backed by preferred equity rather than cash deposits,” Apyx stated in a recent post. The protocol emphasized that investors should view these fluctuations as part of the normal market cycle.
Apyx further explained that its peg stability model includes mechanisms to withstand market stress. The preferred shares have features that allow issuers to increase dividend rates, which can enhance demand and stabilize the shares’ value over time.
The company noted that STRC has traded below its par value multiple times since last August, but each instance has seen a recovery back to $100. Apyx maintains that it holds collateral exceeding the circulating supply of apxUSD, providing a buffer against market fluctuations.
“Users can compare the collateral position against apxUSD supply in real time through the app dashboard,” the protocol added.
This explanation comes as market participants expressed concerns over the recent de-pegging, fearing it could undermine investor confidence. There were also worries about potential liquidations in Morpho lending markets, but Apyx reassured users that the primary market dynamics are driven by dividend accrual rather than the spot price of STRC.
In related news, BlackRock’s IBIT fund saw a significant drop of $342 million on the same day, while other cryptocurrency funds, including those for Ether and Solana, also faced net redemptions as market conditions worsened.
- U.S. spot Bitcoin ETFs have experienced 13 consecutive days of outflows, totaling $4.37 billion since mid-May.
- Total assets in these ETFs have decreased from $104.29 billion to $82.83 billion.
- Ether, Solana, and XRP funds have joined Bitcoin products in ongoing net redemptions.
Apyx's apxUSD stablecoin briefly fell to 93 cents on June 4, 2026, amid a broader market decline. The de-pegging highlights concerns over stablecoins backed by equity, as fluctuations in the underlying assets directly affect their value.