Waves Pumps 100% In A Week, Time For A Revival?

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Last Updated on 5 June 2022 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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Earlier in the year the crypto coin Waves made headlines in the weeks after Russia invaded Ukraine. The native token of the Waves blockchain was thought to be used by Russians who were looking for a way to park their money while their own rubles were devaluating because of actions by the Kremlin.

By end of March, Waves experienced surges of about 50% per day (of course at that time, Bitcoin traded at $47,5k and sentiment for crypto was widely positive). At a certain point, there were even rumors that the digital currency was used to buy apartments for rich Russians in Dubai trying to circumvent Western sanctions.

However, as the Terra collapse happened, Waves also suffered alongside of it because of the existence of an algorithmic stablecoin on its blockchain.

Advertentie.

Neutrino token

In fact, even before the TerraUSD stablecoin lost its pegged value to the American dollar in the beginning of May, Waves’ very own algorithmic stablecoin, known as the Neutrino Token, had already lost its peg in early April. It lost it temporarily again in May. Neutrino, unlike TerraUSD however, was able to regain it’s peg afterwards.

In a blog post at the time, Waves’ management explained that:

This was due to aggressive selling of the token in the USDN liquidity pool on Curve Finance. The de-pegging alone was incredibly unfortunate, but the problems didn’t stop there. Then Vires Finance, the Waves-based lending protocol, ran into a liquidity crisis, a ‘bank run.’ Worried lenders rushed to withdraw their positions from the protocol.

Waves pulled back to a bottom value of about $4.

And now, ever since Bitcoin bounced back from it’s temporary low last week, Waves has been making (pardon the pun) waves again, up well over 100% in the past week on high volume these past few days.

Even though it’s still well off it’s $62.32 peak in March, it could just make a run for a temporary high again, which is why several major media outlets have picked up the story. According to analysts, if the $8 level can be held, $12 should be next.

Let’s check back in a few weeks if they are right.