- Waves is a large blockchain project that is in a turnaround.
- The developers are implementing a recovery plan after Neutrino lost its peg.
- The Waves Ducks Hunt project went live this week.
Waves price has defied gravity in the past few months as investors buy the dip. The token is trading at $6.40, which is about 55% above the lowest level during the weekend. Its market cap has jumped to over $647 million.
What is Waves and why is it rising?
Waves is one of the biggest blockchain projects around. It is a smart contract platform that enables developers to build decentralized applications (dApps) in all industries.
Waves is best-known for Neutrino, its algorithmic stablecoin that lost its peg a few months ago. Since then, the stablecoin has managed to stabilize slightly below its stability level of $1. According to CoinGecko, it has a market cap of over $787 million.
After its de-pegging, Waves launched a revival plan that includes several stages. First, the developers came up with a strategy to fix the peg. They did this by defining the maximum swap amount parameters to make arbitrage of USDN back to peg more accessible.
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Second, the revival called for solving the liquidity crisis, especially in Vires Finance. Vires is one of the biggest DeFi platform created in Waves ecosystem. To solve this, the platform decided to set WAVES / USDN/EURN liquidation threshold to 1. This means that all borrowers must return 99.98% of their loans to avoid liquidation of their positions.
Most importantly, they called for a daily withdrawal limit for both USDT and USDC to $1,000. Other strategies are to introduce liquidity position lock to gain a larger share of VIRES Token and introduce an adaptive borrow and withdraw limits for Vires.
Waves price is rising as investors focus on the overall growth of some of its DeFi tokens. For example, Vires has seen its total value locked remain unchanged at $662 million in the past 30 days. The volume in Waves Exchange has risen by 10%. Waves is also rising after the recent launch of Waves Ducks Hunt project.
Waves price prediction
The four-hour chart shows that Waves price has been in a strong bullish trend in the past few days and is currently hovering near the highest point since June 11th. Along the way, the 25-day and 50-day moving averages have formed a bullish crossover pattern while the MACD has moved above the neutral point.
Therefore, since there is no major catalyst pushing Waves higher, there is a likelihood that the coin will have a pullback in the coming days. If this happens, the next key support level to watch is at $5, which is about 20% below the current price.
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