- The price declined to $0.82 in May and again to roughly $0.93 in June.
- As rumors of market manipulation spread in April, the USDN dropped to $0.78.
Another algorithmic stablecoin is showing symptoms of strain as it slips below its United States dollar peg, just as the crypto industry is trying to negotiate the bear market and recover from the assault brought on by stablecoin occurrences like the Terra collapse.
This is the fourth time this year that the algorithmic stablecoin Neutrino Dollar (USDN) has strayed from its dollar peg. Waves’ stablecoin is now trading at $0.97, which actually climbed up from the low of $0.90 recently.
Fluctuating Prices Over the Year
As rumors of market manipulation spread in April, the USDN dropped to $0.78. After its first drop, the stablecoin quickly bounced back. However, the digital asset exhibited further symptoms of weakening in the months that followed. The price declined to $0.82 in May and again to roughly $0.93 in June.
The stablecoins developers held a vote to alter the protocol’s specifications in order to fix the stability problems. Following the vote, the team revised the protocol’s economic mechanisms. The maximum swap amount, protection mechanisms for the backing ratio, and the distribution of incentives are all up for revision.
Acala USD (aUSD), the network’s stablecoin, had its value drop by 99% after a recent attack. The sudden mint of over a billion aUSD has left its owners wondering whether and how the decentralized financial system can recover. Tokens of the aUSD currency are still changing hands at a price of $0.63 as of this writing.
HUSD, a stablecoin supported by cryptocurrency exchange Huobi, also fluctuated to $0.82 earlier this month owing to a lack of liquidity. The depeg, according to the exchange, was caused by the closure of market maker accounts to ensure regulatory compliance. Due to this, there was a temporary depeg, however, it was quickly corrected by the issuers.
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