NEAR Token Rises On New Stablecoin Launch, Can It Rival Terra?

CoingapePubblicato 2022-04-26Pubblicato ultima volta 2022-04-26

Introduzione

NEAR, the native token on the namesake protocol, surged on Tuesday as the blockchain’s widely anticipated stablecoin, USN, began trading.

NEAR, the native token on the namesake protocol, surged on Tuesday as the blockchain’s widely anticipated stablecoin, USN, began trading.
NEAR jumped nearly 10% from a three-week low, and is currently trading around $14.8. But tracking broader losses in the crypto market, the token is still down 12% over the past week.
Trading in the Near Protocol’s algorithmic stablecoin began late-Monday. USN was launched by NEAR-based decentralized organization Decentral Bank. While the token will have a dynamic yield, Decentral said early lenders will likely receive a yield of 20%, which rivals that of Terra’s UST stablecoin.
NEAR’s USN token goes live
USN is an algorithmic stablecoin, which means it uses a mix of tokenomics and a reserve to maintian its 1:1 peg against the U.S. dollar. Users can burn NEAR tokens to mint USN, and vice-versa.
USN’s reserves will be maintained by Decentral Bank. The DAO plans to hold monthly votes to distribute $10 million in rewards for trading in USN. The token’s algorithmic nature puts it in direct competition with Terra’s UST.

NEAR token jumps 10% from 3-week low

Interest in stablecoin staking has surged this year, as investors sought steady returns amid high market volatility. Terra’s Anchor Protocol, the blockchain’s largest DeFi platform, saw total value locked hit a record high on Tuesday.
USN faces a crowded market, tough competition
While NEAR prices reacted positively, the launch’s social media reaction was mixed. Most users said they will adopt a wait-and-see approach to USN, while also looking out for more DeFi options in the Near protocol.
USN faces tough competition in the stablecoin market. Terra’s UST, which USN intends to compete with, is backed by about $2.5 billion in reserves, and is also the third-largest stablecoin by market capitalization.
I’m not apeing in now. I want to see how this plays out. I will follow $USN closely though. And soon there will be another competitor in $USDD (Tron) that promises 30% APY.
-DeFi analyst @Route2FI
USN also has to compete with other established stablecoins such as Tether (USDT) and Circle (USDC), which command enormous volumes.
NEAR is also not the only recent entrant to the stablecoin space. Justin Sun’s Tron intends to launch its own stablecoin next month, with $10 billion in reserves and a claimed 30% yield.

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A Crucial Event is Approaching, Pay Attention to Friday: This Could Be the Fed's Most Important Event This Year

Federal Reserve Chair Kevin Warsh is preparing to deliver one of his most significant speeches this week at the Jackson Hole symposium. Markets and Fed officials are focused on a fundamental question: Is persistently high U.S. inflation due to temporary shocks like tariffs and the war with Iran, or is the economy still too strong from a demand perspective? The answer could determine whether the Fed will raise interest rates in the coming period. Investors will scrutinize Warsh's Friday speech for clues about his economic assessment and the conditions under which he might tighten monetary policy. The outlook is interpreted through two scenarios. One suggests inflation has exceeded the Fed's 2% target for over a year due to temporary shocks and may recede spontaneously. The other warns these events mask deeper economic imbalances, where strong demand allows companies to keep raising prices, potentially necessitating rate hikes. While recent softer inflation data has eased pressure for a September rate hike, concerns remain that the Iran war, new tariffs, and a surge in AI investment could exert lasting upward pressure on prices. Divisions within the Fed are growing, with some officials pushing for further tightening, citing robust consumer spending and labor demand, while others believe price pressures may ease on their own. A notable feature of Warsh's tenure has been his reduced guidance to markets, arguing central bankers talk too much. However, this reluctance to share his own views may be making it harder to build consensus, as evidenced by three dissenting votes for a rate hike last month—the highest in nearly a decade. Market reactions are being closely watched. Following the July meeting, the yield on the 30-year U.S. Treasury note rose to its highest level since 2007, suggesting investors believe the Fed might tolerate slightly higher near-term inflation but could require more significant future rate increases. Therefore, the Jackson Hole speech is crucial not only for near-term rate expectations but also for understanding how Fed policy communication will be shaped under Warsh's leadership.

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A Crucial Event is Approaching, Pay Attention to Friday: This Could Be the Fed's Most Important Event This Year

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455 Totale visualizzazioniPubblicato il 2024.12.10Aggiornato il 2026.06.02

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