Key Takeaways:
- DApp building platform Wave Finance saw its native token WAVES pump 117% in value over the previous week.
- The blockchain’s TVL reached $1.8 billion.
- Neutrino Protocol might be behind the rally.
YEREVAN (CoinChapter.com) – Waves Finance’s same-name token value jumped nearly 13% in the previous 24 hours and traded at $20.4 in Friday’s Asian-Pacific session. The upside move came as a continuation of an explosive rally that granted WAVES price a 117% advance in the previous week and defied the ubiquitous declines across the crypto market.
In detail, the WAVES bulls pushed the digital asset over a significant support-turned-resistance bar on Feb. 27. However, the trading volumes have declined since, as the price action headed towards another obstacle at $22.5.
Also read: Bitcoin fishes return to accumulation as BTC eyes $45K breakout.
The weakening buying pressure begs the question of whether the digital asset can break the mentioned resistance. Moreover, the token’s relative strength index (RSI) charted through “overbought” territory for the previous week, raising bearish concerns.
In detail, the WAVES price RSI is a momentum indicator that reflects traders’ return expectations. When it runs over 70, investors might consider the digital asset overbought, and short the token, subsequently lowering its value.
Thus, the WAVES price rally is likely to subside in the upcoming days, despite the fundamental developments behind the uptrend.
Waves Finance upgrade
The recent rally raised Waves’ popularity among traders. Furthermore, according to KuCoin exchange’s Trending Coins report, Waves took the gold as the biggest gainer in the previous week.
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Moreover, Waves announced it was “transforming” and introduced Waves 2.0. The team will implement a new version of Waves Consensus based on Practical Proof-of-Stake Sharding (PPOSS).
The development of our highly scalable and EVM-compatible network will start this spring. The new network will be connected to the existing one for a smoother transition to Waves 2.0 without depreciating the old network’s value or efficacy.
clarified the platform.
Neutrino Protocol behind WAVES rally?
Nutrino Protocol, in particular, might get the credit for the rally. It is the largest project on the Waves blockchain. Moreover, it accounts for over 55% of the total value locked (TVL), which stood close to $1.8 billion on March 4.
Additionally, the price explosion initiated after Neutrino posted several upgrades that could make 2022 “the year of Neutrino.” In detail, the platform changed the staking process of its native token NSBT by introducing a new entity, gNSBT, dubbed “votes.”. The latter is used to split users’ balance of “votes” and NSBT balance.
NSBT stakers receive “votes” (gNSBT) in 1 to 1 proportion. Owners of gNSBT receive rewards — a percentage of collected WAVES ↔ USDN swap fees (the protocol fee). Voting in the Neutrino protocol is done with gNSBT.
explained Neutrino.
Also read: EU parliament scraps plan to ban proof-of-work.
As a result, the protocol raised its TVL by 125% in the previous week.
Moreover, the Neutrino protocol’s algorithm regulates the USDN (Neutrino dollar) price, a stablecoin used in the Waves ecosystem and backed by WAVES tokens held in the smart contract.
