The native token of Near protocol, NEAR is trading for $15.40 right now, the price of the layer 1 network has had a surge and this may be attributed to the protocol’s integration of Terra’s dollar-pegged stablecoin UST.
At $8.50 on December 20, the same token made a 92% rise from this level to its all-time high. There have been a lot of protocol changes that have led to the rise in prices. These include the launch of a sharding feature and the integration of Terra’s dollar-pegged stablecoin UST.
Solana, Avalanche, and other layer-1 blockchains, like Near, are trying to improve on Ethereum’s flaws, just like Near is trying to. For example, it’s built with a consensus algorithm called proof-of-stake (PoS).
This makes the network more environmentally friendly, for example. “Sharding” is also being used by Near in a native update called Nightshade, which makes it easier for people to play.
Sharding makes a blockchain network more scalable by making multiple parallel chains that do the work of processing transactions and other operations.
It wasn’t until November 15 this year that the network went live. This launch didn’t have nearly as big an effect on the price as Terra’s integration with it did, though.
On December 20, the protocol said that it was going to add crypto’s largest decentralized stablecoin, UST, to its network. The price of NEAR went down right away after the announcement.
Terra is now part of Near Protocol
Along with the integration of UST, the protocol, and a few decentralized finance (DeFi) apps, there were also a lot of incentive campaigns to get people to use them.
Every one of these incentives is aimed at making UST more valuable in the Near ecosystem.
On Rose a decentralized exchange (DEX) that’s good for stablecoin swaps, users can earn up to 26.3 percent in the native ROSE token for adding UST to the app. If you want to add liquidity and make money, you can deposit UST on Nearpad, which is a DeFi hub with an incubator and a DEX.
Because stablecoins are the lifeblood of DeFi, both the teams from Near and Terra hope this new integration will help their apps and stablecoins become more useful.
