Neutrino USD (USDN) has lost 5% of its value dropping to $0.9135 at the time of writing this report. Data available from Coinmarketcap shows that USDN started losing its peg to the dollar on Thursday, August 25, when the stablecoin dropped below $0.9700 at 9.40 AM same day. Since then the stablecoin has continued to lose value relative to the USD.
An Algorithmic Stablecooin
The stablecoin is another algorithmic coin that has been backed by cryptocurrencies. It was developed by Neutrino protocol and all its operations are smart contract governed.
According to an update from the website,
“Neutrino is an algorithmic price-stable assetization protocol acting as an accessible DeFi toolkit. It enables the creation of stablecoins pegged to specific real-world assets, such as national currencies or commodities.”
A Surge in Trade Volume
The stablecoin is ranked #64 according to its market capitalization of $629 million. In the past 24 hours, its trading volume has risen to $6.2 million. This is a 72% rise and an indication that investors may be dumping their holdings to avoid bigger losses.
It is possible as well that the spike in volume is a result of more buy-ins as traders anticipate that the peg will be restored. This is the view of @tuituitero who responded to an alert on USDN.
Not The First Time
He stated that this has been the scenario in previous depegs of the stablecoin:
“Everyone buying USDN at a discount will gain in just a few days.. at least that is what happened with every USDN depeg so far”
This is not the first time that the stablecoin has depegged from the USD. The reason that many are not talking about the stablecoin could be due to the fact that it is not as highly capitalized as the Terra USD that depegged a few months ago.
🚨 Neutrino USD (USDN) Stablecoin Depegs Again ! pic.twitter.com/PA4NjOtnQj
— Altcoin Alerts (@Altcoin_Alerts) August 26, 2022
At a point during the day, the stablecoin lost more than 6% of its dollar peg, bringing its value to $0.904316, according to a post by Altcoin Alerts.
