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Despite founder’s conviction, why WAVES may be waving good-bye to a rally

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This month was a fraught time for one alt coin community in particular. Between March and April 2022, Waves [WAVES] hit all-time-highs above $50 but since then, the price of the asset has plunged. Adding to that, Neutrino USD [USDN], a stablecoin backed by WAVES lost its stability and plunged below $0.80 before recovering again.

If that wasn’t enough drama, Waves blockchain founder Sasha Ivanov accused the crypto trading company Alameda Research of provoking users to panic-sell WAVES.

Though FTX CEO Sam Bankman-Fried – who managed his assets through the firm – disagreed, WAVES’ descent is yet to come to a stop. Here’s what the data had to say.

Time to ‘WAVE’ goodbye to a rally?

At press time, WAVES was the 55th biggest crypto by market cap and surfing with traders at $16.15, after losing 11.84% of its value in the last day and dropping by 15.07% in the past week.

Santiment’s weighted sentiment metric, however, showed that there were several euphoric spikes even as WAVES’ price was falling, which could have further triggered bearish momentum.

Source: Santiment

On the other hand, development activity for the project has largely stayed above 5 through most of April, despite the fall in WAVES’ price. This indicates that builders and developers likely still have faith in the WAVES blockchain and its future recovery.

Source: Santiment

Stability has left the stable

While USDN has recovered from its disastrous plunge in price, it was still not quite a dollar-pegged stablecoin at press time and was trading at around $0.9626. What’s more, the stablecoin’s market cap was still trending downwards at press time. This is something that investors should keep in mind, along with the price of USDN.

Source: Santiment

On the other hand, USDN saw some formidable spikes in volume in early and mid-April, sometimes taking it over 100 million USDN. However, these quickly plummeted. At press time, volumes had gradually risen to reach about 15.98 million.

Source: Santiment

That being said, metrics aren’t all what WAVES investors want to see. Traders are still determined to learn more about the accusations Ivanov aimed at Alameda Research. Meanwhile, others are waiting to see how Ivanov’s reported purchase of 5 million USDN and his idea for a WavesDAO will change the ecosystem. And more importantly, whether these ideas can save the portfolios of WAVES and USDN holders.

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Sahana is a full-time journalist at AMBCrypto. She has a Masters in Journalism and her areas of study include crypto-regulation, digital society, privacy, and intersectionality. Ask her about film photography and philately.

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