USDN Depegs Updates
After the terrible collapse of FTX, the global market for digital assets is still going down, and stablecoins are now feeling the heat. Data shows that algorithmic stablecoins like TRON’s USDD and Waves’ Neutrino USD (USDN) are de-pegging a lot.
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Are things bad for USDN?
This whole year, the crypto industry has been worried about algorithmic stablecoins. Massive de-pegging of TerraUSD (UST) to literally zero caused Terra’s LUNA token to crash badly.
According to the data, the stablecoin USDN from WAVES ecology has dropped by a huge 5% in the last 24 hours. The price of USDN went down until it reached $0.75. At the time of this writing, the average price is $0.818.
The market capitalization of USDN has gone down by 5% to $556.8 million. Its 24 hour trading volume, however, is up 207% to $1.3 million.
The Digital Asset Exchange Association (DAXA) warned about Waves, which led to this huge drop. DAXA is a group of five of Korea’s biggest cryptocurrency exchanges.
Can Waves’ stable coin be saved?
Waves made a statement on DAXA, which led to an investigation into Waves token. It said that they understand that Upbit and Bithumb have similar due diligence requirements. Their team works closely with the other team to help with the investigation.
It also said that they will figure out what to do in the next two weeks. While it said that about 4.2% of the total number of WAVES are held in the Neutrino Smart contract, it was not clear what that meant. This is only 9.8% of the total daily volume of trading on all exchanges.
Waves said that USDN is a separate project built on the Waves blockchain. It puts up WAVES as security. This is the only way that USDN can change the price of WAVES.
But in the last 24 hours, the price of Waves has gone down by 10%. At the time of this writing, the average price is $1.83.
Source: Google Trend