NEAR protocol executed a significant move on October 24 to prevent a possible LUNA-like debacle. The NEAR Foundation announced that NEAR’s algorithmic stablecoin USN isn’t sufficiently collateralized amidst extreme market situations.
Thus, it commended closing USN orderly. Meanwhile, the question lingers – will the developments support the altcoin approach nearest resistance? Or restrict the alt’s growth? The team highlighted that the stablecoin encountered several issues within the last few months because of shifts in market perception amid the latest high-profile cases.
It added that the problems forced them to tail off the USN project to ensure security for USN holders. Meanwhile, another announcement by DCB (Decentral Bank) confirmed the winding down of USN, an independent stablecoin based on NEAR’s blockchain.
DCB stated that USN encountered several headwinds within the past few months amidst surged regulatory focus plus market perception shifts following the latest high-profile cases. Meanwhile, the Foundation set $40 million as a Protection Program budget for USN to alleviate any misfortune.
The grant will protect market players from the latest issues associated with USN. That means ensuring authorized USN users can redeem their assets on a 1:1 basis (with USDT).
More to the Tale
The present condition did appear in a somewhat ‘sorry’ state. For instance, you can consider the asset’s TVL. The struggling macroeconomic factors had market players withdrawing cash from the network. PeckShield security noted that NEAR’s total value locked (TVL) plunged since Decentral Bank removed its liquidity.
Meanwhile, DeFiLlama observed a 45% decline in TVL within the last day. While publishing this blog, the metric hovered at $136 million. The development emerged seven days after NEAR saw a colossal uptick in active users. Meanwhile, a move-to-earn app, Sweat Economy, triggered the growth.
Sweat Economy resembles the recognized STEPN Network. What next for NEAR’s price? Time will reveal the details. Meanwhile, the crypto market recorded an uptick over the previous day. Most assets hover with impressive overnight gains during this publication.
Bitcoin recorded a 4.43% 24-hour surge to overcome the hurdle at $20K. While writing these lines, the bellwether crypto changed hands near $20,166. Can it sustain the upside? Time will tell.