An algorithmic stablecoin on the Waves Blockchain system Neutrino USD (USDN) altcoin, It was the last cryptocurrency in the stablecoin community to lose its fixed price to the dollar.
WAVES and Stablecoin USDN Free Fall
As known TerraUSD (UST) A short time ago, it experienced a similar fate and its price, which should have been 1 dollar, fell to 0.23 dollars.
USDN, which should maintain its stable price of 1 dollar, fell 18% to $ 0.82, according to today’s data.
With the effect of this, WAVES, the native altcoin of the Waves platform, has also lost 34% in the last 24 hours to $ 8.38.
The USDN stablecoin of the Waves protocol is very similar in design to Terra’s algorithmic stablecoin UST.
Users need to lock WAVES tokens into Neutrino smart contracts in order to obtain USDN. In addition, USDN is burned in order to unlock the locked WAVES supply, thus keeping the supply and demand in balance and the price of the stablecoin remains constant.
Other smaller algorithmic stablecoins also came under pressure and plunged in price after the UST, which had a market cap of $18 billion before losing its index to the dollar.
Analyst Evaluates The Drop In Altcoin
Messari analyst Dustin Teander said in a statement:
“We can clearly see the spread of UST’s disease. The Curve pool used for USDN-3pool is currently running unstable with 92% USDN.
We noted that similar rates were observed in the Curve pools of UST. This essentially means that the stability of these altcoins is at stake and new investments are made to restore the balance.”
*Not investment advice.