Yesterday, the cryptocurrency market was flashing red, but today it looks like the cryptocurrency market has found a pace with the global cryptocurrency market surging more than 5% and trading at $1.87 trillion.
Among other altcoins that are on green, namesake protocol’s native token NEAR too has surged today as USN, the blockchain’s most expected stablecoin began its trading.
USN Stablecoin Is Live
USN is a stablecoin that resembles TerraUSD (UST), the one that is pegged to the US dollar but don’t hold dollar cash reserves. Also USN is an algorithm stablecoin, meaning it uses both tokenomics and a reserve so that it maintains its 1:1 peg against the US dollar. Event users can burn the NEAR tokens to mint USN or vice versa.
Decentral Bank is one that will maintain USN’s reserves. On the other hand, DAO looks forward to holding monthly votes to give out rewards of $10 million for trading in USN. USN acts as a direct competitor to Terra’s UST because of USN’s algorithm.
Earlier this month, as the rumors spread about USN’s launch, NEAR price surged to near record highs of $18.92 just a few numbers short towards its lifetime high of $20.2.
The USN launch news has given a positive impact on NEAR prices, but on social media there was a mixed reaction. While most users had an opinion of approaching a wait-and-see method towards USN, others are looking for more DeFi options in the Near Protocol.
However, Terra’s UST, which is a competitor to USN, is backed by about $2.5 billion in reserves and Terra’s UST is the third largest stablecoin by market cap.
NEAR is not the only one that has recently entered the stablecoin’s space, because Justin Sun’s Tron also has plans for the world of stablecoin next month with its $10 billion reserves and 30% claimed yield.
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