One Ethereum (ETH) challenger is defying the greater crypto market downtrend and surging in price amid a campaign to shore up its algorithmic stablecoin.
Decentralized applications platform Waves (WAVES) shot up 132% from a weekly low of $4.61 on May 30th to its current weekly high of $10.72.
The 73rd-ranked crypto asset by market cap has since partially retraced and is trading for $7.98 at time of writing.
In late May, Waves released a plan to rebuild its decentralized finance (DeFi) ecosystem “better than ever.”
The revival plan is in response to the price dips of Neutrino USD (USDN), a Waves-backed algorithmic stablecoin designed to exchange one for one against the US dollar. USDN briefly de-pegged in early April and again in early May.
On June 2nd, the Neutrino Protocol called on USDN holders to bring their holdings back to the Waves Protocol in exchange for incentives.
Explains the project,
“Even fully backed stablecoins like USDT have suffered de-pegging due to aggressive selling of the coin in pools. That imbalance signals to the market that the stablecoin is weak and enables market opportunists to trigger significant de-peg events. With large, well-capitalized institutional players now firmly present in the DeFi market, this represents a significant risk.
Neutrino’s peg is now restored for the second time in two months. However, the USDN 3pool is still imbalanced; if large-scale selling occurs, it could cause a third de-pegging. We believe there is a better way. We can reduce the effect of external pools, become much more independent, and grow better and more sustainably as an ecosystem by bringing Neutrinos home.”Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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Featured Image: Shutterstock/Maquette.pro/Natalia Siiatovskaia