USDN Depegs Updates: As the global digital asset market continues to plummet after the terrible FTX collapse, stablecoins are now feeling the heat. Data shows algorithmic stablecoins like TRON’s USDD and Waves’ Neutrino USD (USDN) are decoupling en masse.
Is USDN in Trouble?
Algorithmic stablecoins have been a concern for the crypto industry all year long. Massive de-pegging of TerraUSD (UST) to literally zero led to a terrible collapse of Terra’s LUNA token.
According to the data, the WAVES ecology stablecoin USDN is down as much as 5% in the past 24 hours. The USDN price fell to the $0.75 price level. It is trading at an average price of $0.818 at the time of writing.
USDN’s market cap is down 5% to $556.8 million. However, the 24-hour trading volume is up 207% to $1.3 million.
This massive drop came after the Digital Asset Exchange Association (DAXA) issued a warning about Waves. DAXA is a group of five major crypto exchanges in Korea.
Can Waves save its stablecoin?
Waves issued a statement on DAXA that sparked an investigation into the Waves token. It was mentioned that they acknowledge Upbit and Bithumb’s general due diligence requirements. Their team is working closely with the team to support the investigation.
It added that they will reach a resolution in the next two weeks. Although it mentioned that about 4.2% of WAVES’ total supply is held in the Neutrino Smart contract. This equates to only 9.8% of the daily trading volume across all exchanges.
Waves mentioned that USDN is a separate project built on the Waves blockchain. It uses WAVES as collateral. This is the only way USDN can influence the price of WAVES.
However, the price of Waves is down 10% in the last 24 hours. It is trading at an average price of $1.83 at the time of writing.
Ashish believes in decentralization and has a keen interest in the development of Blockchain technology, the cryptocurrency ecosystem and NFTs. He aims to create awareness around the growing crypto industry through his writings and analysis. When he’s not writing, he’s playing video games, watching a thriller, or exercising outside. Reach me [email protected]
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This post Waves Stablecoin USDN Depegs Massively; Is this the end of?
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