More positives for the Waves open-source blockchain, following the announcement of a DeFi revival plan, the WAVES token price increased by approximately 60 percent in the May 31 trading session, only to crash back down a couple of days later.
DeFi Revival Makes WAVES
The WAVES token jumped from US$6 at the beginning of the week to a US$10.15 intraday peak on May 31 and is now likely to hit its US$12.30 resistance, a point it has not reached since May 11.
The trouble for the WAVES token began at the beginning of April after a large sell-off of USDN. The knock-on effect was last month’s de-pegging of the stablecoin. This, combined with the Vires Finance liquidity crisis and the LUNA crash, meant an intense plunge for WAVES.
Anatomy of a ‘Master Plan’
There are several contributing factors to the 60 percent WAVES surge, the most notable being the Waves DeFi revival plan. The so-called “master plan”, according to a Waves Tech post, will look like this:
- begin buying and locking CRV tokens with 45 percent of the WAVES staking profits from Neutrino, and vote to incentivise the USDN 3-pool, to improve demand for USDN;
- liquidate large accounts, taking control of their collateral;
- sell the collateral without de-pegging USDN to return liquidity to Vires Finance and reduce utilisation rate, enabling larger user withdrawals; and
- improve Neutrino architecture with a new recap token that recapitalises Neutrino with new Waves Tokens when under-collateralised:
As part of the recapitalisation of Neutrino, the Waves protocol will be airdropping the new token via Tsunami Testnet, providing users meet eligibility conditions.
With the wider crypto market slowly turning green after a lengthy period of lows, along with the revival plan to be implemented, WAVES may continue its surge over coming weeks.
WAVES’ Recent Breaks
March was eventful for the Waves protocol as it managed to stay at the forefront of innovation via a partnership with Allbridge. A combination of this partnership and the protocol’s migration to Waves 2.0 caused the token to surge by 120 percent in just a week.
The back end of March saw the Waves protocol pump 70 percent following the news that it would be launching in the US. The US Waves Labs project was tasked with supercharging the protocol’s ecosystem upon its March 28 launch.
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