The token of the decentralized application (DApp) creation platform Waves (WAVES) is plummeting after the algorithmic stablecoin backing it failed to maintain its peg to the US dollar. From opening at $2.38 on December 1st, Waves is now trading for $1.75, a nearly 27% decrease. The low-cap Ethereum (ETH) rival is seeing massive losses after […]
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Approximately 14 days ago, the stablecoin neutrino usd (USDN) tapped a high of $0.994 per unit, and ever since then, USDN has not been able to rise above the $0.97 per unit range. The dollar-pegged asset is associated with the Waves blockchain protocol, and recently the Neutrino Protocol decided to add a token called SURF […]
Since June 12, 2022, the Tron-based stablecoin USDD has remained below a U.S. dollar in value. On Monday, USDD had a 24-hour trading range of around $0.943 to $0.966 per unit and the day prior on June 19, USDD saw an all-time low at $0.928 per unit. Despite being below the U.S. dollar parity, the […]
Amid the crypto market carnage this weekend, another stablecoin slipped below the $1 peg on Saturday, June 18, as the crypto asset called magic internet money (MIM) briefly dropped to a low of $0.914 per unit. The Abracadabra-issued stablecoin dropping in value follows the recent terrausd (UST) failure and USDD’s recent volatility last week. Stablecoin […]
Decentralized applications platform Waves (WAVES) is up by triple-digit percentage points amid an ongoing revival of its decentralized finance (DeFi) ecosystem. Between Monday and Tuesday, Waves jumped from a low of $4.32 to a high of $9.70, a 124% rise within a 24-hour period. Over the weekend, Waves released a plan to rebuild its decentralized […]
The post Under-the-Radar Ethereum Rival Explodes 120% in 24 Hours Amid Plans To Revive Its DeFi Ecosystem appeared first on The Daily Hodl.
Stablecoin management DeFi platform Neutrino emerges as the key factor behind WAVES' ongoing price rally.
WAVES price surged by up to 70% on March 29, reaching a new all-time high around $54. Traders betting against the rise of Waves — the native token of the WAVES blockchain network — suffered losses worth millions of dollars as the WAVES/USD pair extended its recovery to a record level in the past 24 hours.
The price rebound, which started on Feb. 22 when WAVES price was at $8.25 caused around $13.75 million worth of liquidations due to crypto-based futures on a 24-hour adjusted timeframe, data from Coinglass shows.
Around $11 million of the total liquidated positions were short.
As Cointelegraph earlier covered, traders may have jumped into the WAVES market after assessing its three consecutive optimistic updates: the migration to Waves 2.0, the launch of a $150 million fund, and partnership with Allbridge.
Edson Ayllon, product manager at dHEDGE — a decentralized asset management platform, told Cointelegraph that the euphoria surrounding the release of Waves 2.0 in October was reflective in the rising total value locked (TVL) in the Waves ecosystem that reached an all-time high of $4.36 billion on March 29.
"Waves 2.0 adds EVM support to the execution layer, and adds Proof-of-Stake with sharding to the consensus layer," the analyst noted, adding:
"Sharding and Proof of Stake have been concepts Ethereum has been working towards for years on their roadmap."
Interestingly, Neutrino, an algorithmic price-stable "assetization" protocol built atop the Waves blockchain, appeared largely behind the increasing Waves TVL.
Notably, the protocol witnessed an inflow of 8.91 million WAVES in one day — worth nearly $450 million — to its smart contract, data from Defi Llama shows.
Neutrino allows the creation of decentralized stablecoins that maintain their U.S. dollar-peg by collateralizing WAVES tokens. The protocol has launched just one stablecoin project so far, called Neutrino USD (USDN).
The supply of USDN increased from around 800 million to 832 million on a 24-hour adjusted timeframe, coinciding with the rise in the WAVES inflow into the Neutrino smart contract. That presented Neutrino as one of the active WAVES buyers in the past 24 hours.
WAVES appears to have been breaking out of a bullish continuation pattern called a "bull flag."
In detail, the chart pattern looks like a downward sloping channel that appears after a strong price move upward (called "flagpole"). In a perfect scenario, it resolves by breaking out toward the level at a length potentially equal to the flagpole's size.
Related: Here’s how traders were alerted to RUNE’s, FUN’s, WAVES’ and KNC’s big rallies last week
Applying the classic interpretation of the bull flag pattern to WAVES' ongoing price action suggests a continued price rally toward $100, as shown in the chart below.
However, WAVES' weekly relative strength index (RSI) has turned overbought — a sell signal. That could have the WAVES/USD pair retrace towards $34 as its interim support level. That would also mean that traders are returning to bull flag's top for another upside confirmation.
As a result, a continued selloff below $17 would risk invalidating the entire flag setup.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Neutrino was buying the WAVES dip as the price rebounds to the best level in over four months.
Waves (WAVES) continued its price rally further into this week, even as its top crypto rivals wobbled between losses and gains elsewhere in the market.
The WAVES/USD trading pair surged by nearly 75% this week to reach around $31, its best level since Oct. 28, 2021. Its rally came as a part of an upside retracement move that saw it rising by a little over 230% in three weeks.
In contrast, Waves' top rival in the smart contracts sector, Ethereum, underperformed, with its native token Ether (ETH) dropping by almost 2% in the last three weeks. Similarly, Bitcoin (BTC), the leading cryptocurrency by market capitalization, underperformed in the same period, rising by a little over 1%.
As Cointelegraph covered earlier, Waves' price rally might have surfaced in the wake of back-to-back optimistic updates, including the launch of a $150 million fund to support Waves-based decentralized application projects and the partnership with Allbridge to facilitate interoperability between Waves and other blockchains.
In addition, the period of Waves' uptrend also coincided with an increase in its inflow to Neutrino's smart contract. Notably, the supply of Waves tokens into the algorithmic stablecoin protocol increased from 43.38 million on Feb. 15 to as high as 51.80 million on March 8.
As of March 10, Neutrino held about 47.31 million Waves tokens in its smart contract, with the total value locked coming out to be worth $1.35 billion, almost 60% of the total value locked inside the Waves ecosystem.
Notably, Neutrino enables the creation of multiple decentralized stablecoins that maintain their U.S. dollar-peg by collateralizing Waves stored in Neutrino's official smart contracts. The first such stablecoin is Neutrino USD (NUSD).
Over the past 30 days, Neutrino issued more than $135 million worth of NUSD, backed by reserves that surged from around $530 million to — as mentioned above — $1.35 billion. Meanwhile, an increasing amount of Waves tokens supplied into Neutrino's smart contracts underscored that it was one of the most active Waves buyers since Feb. 10.
As Waves' price boomed, Neutrino appeared to have kept the tokens in its "reserves fund" to provide backing to NUSD in the event of the next price drop, thus limiting its downside bias.
Technically, Waves may be sketching out a triple top against the U.S. dollar as its price comes closer to testing its all-time high near $42 for the third time since May 2021.
In detail, triple tops form when the price form three peaks with pullback moves towards a so-called "swing low" in between. First, they show that markets cannot penetrate the peak areas, i.e., they cannot find new buyers near/at the top level. Later, the price falls back to the swing low.
Related: Waves risks ‘death cross’ plunge after price rallies 88% in six days
As a result, if Waves fail to close above its first and second top, its likelihood to drop towards the swing-low area between $11 and $13 — the range that has been supporting the three peaks — will be high.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
