Why did Usual (USUAL) rise against the market trend in December?

Usual (USUAL) – The 61st project on Binance Launchpool – has shown impressive price performance after its listing. USUAL has been continuously increasing even when the entire market is facing a strong adjustment following adverse macroeconomic news. What is driving this upward momentum? Is it sustainable?

Here are the findings and observations of BeInCrypto on the rise of USUAL as well as some predictions about the future price of USUAL.

Usual's (USUAL) fully diluted market capitalization exceeds $5 billion

Usual (USUAL) is showing positive data reflecting strong investor expectations not only for the project itself but for the Real World Asset (RWA) sector in general. In terms of trading data, the USUAL price has reached a high of $1.3 today, pushing the FDV market capitalization of USUAL beyond $5 billion.

The daily trading volume of USUAL has exceeded $2.1 billion, while the circulating market capitalization is only $560 million. This has resulted in a volume-to-market cap ratio of 375%, indicating a very strong market demand for USUAL in the current context. Meanwhile, only 12% of the USUAL supply has been put into circulation, equivalent to 490 million USUAL out of a total of 4 billion USUAL.

Notably, the positive momentum of USUAL occurred on a day when the market capitalization declined by 6.5%. USUAL seems to have stronger internal drivers than the macroeconomic headwinds. Many believe that the USUAL price still has upward momentum, as USUAL faces less selling pressure from VCs compared to other RWA projects.

"Usual only raised $8.5 million, meaning VC selling pressure is lower compared to peers — Ondo ($51 million), First Digital ($25 million), and Agora ($12 million)." – Stablecoin Intern commented.

Usual's stablecoin market capitalization joins the billion-dollar club

Usual's stablecoin, USD0, has seen an astonishing growth in market capitalization in 2024. The market capitalization of USD0 has grown from $20 million in June to over $1 billion. Just in the past 30 days, the USD0 market cap has increased by 161% (according to RWA.xyz), making it the fastest-growing stablecoin market cap in the industry.

USD0 is a stablecoin backed by U.S. T-Bills, generating yield from T-Bills and distributing the profits to investors through USUAL and USD0. Additionally, the project has launched USD0++, a liquid token received after staking USD0. Holders of USD0 need to stake their USD0 for 4 years to mint USD0++. Holders of USD0++ will receive 45% of future USUAL token issuance.

Investor Hitesh.eth – Founder of DYθR – commented on this mechanism as follows:

"The USUAL issuance rate will decrease as more users participate, reducing the number of tokens issued per locked USD. This reduction in issuance will increase the profit per token, leading to a natural increase in the value of USUAL. The higher APY of USD0++ will attract more people to stake their USD0. Currently, the APY is around 80%, so we can expect the TVL (Total Value Locked) to increase in the coming days. Currently, the TVL is around $900 million, with 87.47% of USD0 already staked for USD0++." – Hitesh.eth commented.

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