Yerba
I would highly recommend repotting your peyote, as from what I can see from the picture is your little guy isn't getting enough drainage or light. The potting technique I use for my peyote's; firstly each soil type was carefully sieved and then mixed together well, 20% consisted of potting soil the other 60% consisted of Umgeni river sand (qaurtz river sand) and 20% Laterite. An inch or so of large stones were placed at the bottom of each pot, then 3/4 of an inch of 3-5mm stones that were separated from the umgeni river sand on sieving was added to assist with their drainage of water.
Good drainage is critical to healthy growth and allows more frequent watering, if the drainage is not adequate root rot will occur. After watering the soil it should return to complete dryness in no more than 2 days. Also do everything you can to give him as much warmth and extra light as possible, replicating their natural environment is vital to growing happy and healthy peyote's. I truly wish you the best of luck and please keep us updated on his condition.
Much Peace and Compassion