Zoran Kole, Crypto Insiders founder, revealed that a native stablecoin called Near Protocol could be launched. Kole stated in a post that the near protocol native stablecoin will be announced on April 20th as an algorithmic stabilitycoin named USN.
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The digital asset will be deployed in cooperation with “other well capitalized stablecoins”, according to the post. The post does not contain any official information, but speculation has been made by the crypto community.
This could mean that users should take the launch of USN allege with a grain. 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. Near might be able gain an advantage against Anchor or similar products within the decentralized finance sector (DeFi) as well as the centralized finance sector (DeFi).
Kole wrote these words on Near’s implications for native stablecoins. As he supported a bullish thesis, he was arguing in support of this protocol.
These will be offered a very attractive 20% APR which will incite DeFi capital rotation to the Near ecosystem and siphon the total value from alternative layer-one protocols.
DeFi Llama data shows that Terra has a total value of $29 billion (TVL). Near however records a $300 million in total value (TVL)
According to market cap, Terra is at $40 billion while Nearly $10 billion are close. Kole believes that the creation of an algorithmic stablecoin can help increase its market capital and exceed Terra.
Close to Destroying the Competition
The USN discovery was part of larger research on the Near Protocol’s potential for long-term market dominance over the competitor. Kole then compared the protocol to an upcoming Ethereum 2.0 live version.
Kole thinks Near is better than ETH 2.0 or other layer-1 Blockchains for scalability and incentive that might boost adoption.
Kole, Electric Capital shared data that Near is one the most active networks in terms of its development. As seen below, this network’s monthly active developers far surpass those on Cardano, Binance Smart Chain, Tezos, Avalanche, Terra, Algorand, Fantom, and Internet Computer.
Kole thinks this trend will persist, given that the network boasts ETH 2.0 as well its own Ethereum Virtual Machine Network (EVM). This will support the network’s growth in terms of activity and usage. Kole concluded:
As the story for stablecoin yields grows, this will result in a comparison between Near and Terra ($LUNA). Near is currently at $10 billion and Terra’s market cap sits around $40 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.
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NEAR trades are currently at $16 and yield a profit of 1% on the 4-hour chart.
