Why is Waves (WAVES) crypto buzzing today with over 100% gains?

Highlights

• Waves was one of the top gainers amongst the top 100 cryptos today (31 May 2022)
• The Waves team has announced a revival plan for USDN
• The Waves team aims to restore the dollar-peg of USDN over the next two months

After plunging by over 90% from its 31 March high of US$54.61 to US$4.39 on 27 May 2022, Waves (WAVES) crypto is showing some signs of pullback in the last 24 hours, in-line with the overall crypto market. At the time of drafting this article, WAVES was trading at US$9.68 per token, up 109% in the last 24 hours with its trading volume surging by a whopping 1768.71% to over US$3 billion, according to CoinMarketCap.

Worth mentioning here is that in the last 24 hours, the crypto market cap has increased by 5.86% to US$1.31 trillion led by Bitcoin and Ethereum, the two biggest cryptocurrencies, which account for over 60% of the crypto market capitalisation together. In the last 24 hours, Bitcoin price has gained by over 5% to nearly the US$32k mark while ETH gained by over 6%.

Like Bitcoin and ETH, most other altcoins witnessed strong rebound today. But the recovery in WAVES crypto that we are witnessing today could be because of the announcement made by the Waves team on the USDN revival plan.

Waves Tech, the team that has developed the Waves blockchain and the operator of the WAVES token, announced a revival plan on 27 May after a massive sell-off of USDN, Waves Tech's native algorithmic stablecoin in the Curve Finance liquidity pool. This selloff led to the de-pegging of the stablecoin from the US dollar at the beginning of last April. On top of this, the liquidity crisis at Vires Finance, a Waves-based lending protocol, also led to the selloff in WAVES crypto.

Also, the recent LUNA/UST crash worsened problems for WAVES and led to a second dollar de-pegging of USDN. These crises caused a massive drop in WAVES token over the past one month.

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About Waves 

Image source: © Vladpetrser | Megapixl.com

Now, as part of the revival plan, the Waves team aims to restore the dollar-peg of USDN. The revival plan of Waves team includes the following four things:

-Liquidating whales’ (large) accounts and restoring liquidity to Vires

-Issue a new token to recapitalise the Neutrino Protocol

-Slowly sell USDN collateral over two months

-Return liquidity to the USDN pool using Curve and CRV tokens

The plan of liquidating whales' accounts and restoring liquidity to Vires Finance could be behind today's rally in WAVES token.

Waves is a global open-source platform that supports smart contracts and decentralised applications. Launched back in 2016, WAVES became one of the earliest ICO (Initial Coin Offerings) in the crypto industry. It is based on the proof-of-stake consensus that aims at making and improving blockchains in terms of user-friendliness, utility and speed. In addition to this, the crypto project intends to leave minimum carbon footprints.

Over the years, the platform has evolved, and many new features have been introduced compared to the original design.

Waves whitepaper has described the project as a ‘community-based stack of decentralised open-source technologies to build scalable, user-friendly apps.’

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