Terra Users Heads Up, Why NEAR May Launch Native Stablecoin With A 20% APR
April 07 2022 - 5:00PM
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Crypto Insiders founder Zoran Kole revealed the possible launch of
a Near Protocol native stablecoin. Via a substack post, Kole
claimed the digital asset will be announce on April 20 as an
algorithmic stablecoin called USN. Related Reading | TA: Terra
(LUNA) Surges, Is It Eyeing A Correction Now? The digital asset
will be deployed in cooperation with “other well capitalized
stablecoins”, according to the post. At the time of writing, there
seems to be no official announcement other than this post and
speculation from the crypto community. Therefore, users might want
to take this potential launch with a grain of salt. In addition to
the USN allege launch, the stablecoin could possibly offer a 20%
Annual Percentage Rate (APR) on a product similar to the Terra
ecosystem’s Anchor Protocol. This product enables users to stake
their stablecoins, in the form of Terra’s native UST, and leverage
a 19% APR. If the launch is executed, Near could gain an edge
against Anchor and similar products on the decentralized finance
(DeFi) and centralized finance (DeFi) sector. Kole wrote the
following on the implications of a native stablecoin on Near, as he
argued in favor of a bullish thesis for this protocol: They will
offer an extremely attractive ~20% APR, which will ignite DeFi
capital rotation into the Near ecosystem, siphoning the total value
locked from other alternative layer-one protocols. Data from DeFi
Llama records a $29 billion in total value locked (TVL) for Terra.
In contrast, Near records $300 million in total value locked (TVL).
In terms of market cap, the contrast is similar as Terra stands at
$40 billion and Near at $10 billion. Kole argues that the launch of
an algorithmic stablecoin will contribute to Near increasing its
market cap and surpass Terra. Near To Destroy The Competition Th
USN revelation was part of a bigger study on the Near Protocol and
its potential to take market share over its competitor in the
long-term. Therein, Kole compared this protocol with a live version
of the upcoming Ethereum 2.0. Kole believes Near is superior to ETH
2.0 and other layer-1 blockchains in terms of scalability, and
incentives that could boost its adoption. Data shared by Kole from
Electric Capital indicates that Near is one of the most active
network in terms of development. As seen below, this network’s
monthly active developers far surpass those on Cardano, Binance
Smart Chain, Tezos, Avalanche, Terra, Algorand, Fantom, and
Internet Computer. Kole believes this trend will continue as the
network has the advantages of ETH 2.0 and its own Ethereum Virtual
Machine (EVM) network. This will support the network’s growth in
terms of activity and usage. Kole concluded: This will lead to a
comparison of Near to Terra ($LUNA) as the narrative for attractive
stablecoin yields proliferates. Terra currently has a market
capitalization of approximately $40 billion while Near sits at $10
billion. The catalysts above will strengthen Near’s fundamentals in
both the short and long term and likely cause its market
capitalization to appreciate by 100% at minimum over the next few
months. Related Reading | Terra (LUNA) Surpasses Ethereum Becoming
Second Most Staked Asset At the time of writing, NEAR trades at $16
with a 1% profit on the 4-hour chart.
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