Stablecoin USDN loses its peg to the dollar for the fourth time in 4 months

The value of the asset deviated significantly from the fiat currency rate in April, May, and June

26.08.2022 - 11:15

549

2 min

What’s new? Algorithmic stablecoin Neutrino USD (USDN) has again lost parity to the US dollar. The rate of the stablecoin fell to $0,82 in April and May and to $0,89 on June 10. On August 26, the value of the asset dropped by 9% against the fiat currency. At 12:00 UTC, USDN is trading at $0,96, having gained 0,69% per day, according to CoinMarketCap. The reasons for the drop in the rate are not yet known.

Link to CoinMarketCap

What is Neutrino USD? The stablecoin was released in 2019 on the Waves blockchain with the Proof-of-Stake (PoS) consensus algorithm and is fully backed by its native cryptocurrency WAVES. Based on the Neutrino protocol, it is possible to create stablecoins tied to specific real assets, such as national currencies or commodities. At the time of writing, WAVES is trading at $4,845, down by 5,46% in 24 hours, according to Binance.

What happened before? On June 13, the algorithmic stablecoin USDD of the TRON blockchain temporarily plunged to $0,97. The coin has now fully recovered its rate. The largest such incident is still the TerraUSD (UST) stablecoin crash, which caused the collapse of the entire Terra ecosystem in May 2022.

To learn more about the potential of algorithmic stablecoins and the risks associated with them, see GetBlock Magazine’s article.

Author: