Waves rose by three-digit percentage points amid the continued revival of the DeFi ecosystem. Between May 30 and May 31, Waves rose 124 percent from $4.32 to $10.07 in as little as 24 hours. Leaving some of its steep rise since then, the altcoin is trading at $9.83 at the time of writing.
The altcoin released a plan over the weekend to rebuild its decentralized finance (DeFi) ecosystem “better than ever.”
The resurgence plan came in response to the pegged removal of Neutrino USD (USDN), a Waves-backed algorithmic stablecoin designed for one-to-one exchange against the US dollar in early April. Vires Finance, the liquidity protocol of Waves Blockchain, faced large withdrawals after the decision. The following statements were included in the statement:
"On April 2, 2022, the Neutrino Protocol Stablecoin (USDN) lost the US dollar peg. This was due to the aggressive selling of the token in the USDN liquidity pool at Curve Finance. De-pegging alone was incredibly unfortunate, but the problems didn't end there. Then, Waves-based lending protocol Vires Finance faced a 'bank run' that caused a liquidity crisis. Concerned lenders were quick to withdraw their positions from protocol."
Steps outlined in Waves' resurgence plan include bringing back the USDN peg by increasing the number of users eligible to participate in arbitrating the difference in price of the stablecoin in Curve Finance and smart contract, which is hard-coded to $1 but significantly less than $1. Waves also says it will solve the liquidity bottleneck in Vires Finance by limiting daily withdrawal limits.
Neutrino USD is trading at $0.9951 at the time of writing after falling below $0.80 on several occasions since the beginning of April.
Experts and market commentators believe that if Waves fulfills its commitments and finds a new narrative, the recovery in the price of the altcoin will continue to strengthen. On the other hand, the biggest obstacle to the price seems to be Bitcoin for now. The continuation of the recovery recorded in the last three days by the largest cryptocurrency may support the rise in the price of Waves, while the opposite situation may sharply disrupt the upward momentum in the price.