$USUAL is the native governance token of the Usual protocol, aiming to improve governance and profit distribution mechanisms in the stablecoin market. Here is a brief analysis of $USUAL:
### Basic Information:
- Project Name: Usual
- Token Name: $USUAL
- Total Supply: 4,000,000,000 USUAL
- Initial Circulating Supply: Approximately 494,600,000 USUAL (about 12.36% of total supply)
### Project Background:
- Usual Labs is a startup focused on stablecoin technology, with its core product being the stablecoin USD0, backed 1:1 by real-world assets (RWA).
- The project officially launched its mainnet on July 10, 2024, and started its points activity.
### Functions of the $USUAL Token:
- Governance: Users holding $USUAL tokens can participate in governance decisions of the Usual protocol and vote on the future development of the protocol.
- Revenue Distribution: $USUAL is used to redistribute protocol profits, aiming to return value to the community and users rather than concentrating it in the hands of a few insiders.
### Innovations:
- RWA-backed Stablecoin: USD0 is backed by high liquidity assets such as short-term U.S. Treasury bonds, aiming to provide higher security and stability.
- Profit Sharing Mechanism: Unlike traditional stablecoins, Usual redistributes profits generated by the protocol to holders through the $USUAL token.
- Deflationary Mechanism: The issuance of $USUAL is linked to the total value locked in the protocol's USD0 (USD0++) and decreases as TVL increases, creating a deflationary effect.
### Market Performance:
- Price and Trading: On December 12, 2024, the price of $USUAL was approximately $0.7094, with a trading volume of $139,929,886 in the last 24 hours.
- Community and Investment: Usual has already secured investments from firms including IOSG Ventures and Kraken Ventures, indicating market confidence.
### Risks and Challenges:
- Market Competition: In the stablecoin market, established stablecoins like USDT and USDC have captured a significant market share, and Usual needs to win market share through differentiated strategies and community building.
- Volatility: Although USD0 is backed by RWA for stability, $USUAL, as a governance token, may still be influenced by market sentiment and overall volatility in the cryptocurrency market.
### Price Assessment:
- Current Price: As of December 12, 2024, the price of $USUAL was approximately $0.7094.
- Market Data:
- 24-hour Trading Volume: $139,929,886
- Circulating Market Cap: Based on a circulating supply of approximately 494.6 million USUAL, its market cap is $110,147,420.
- Total Market Cap (Fully Diluted): Based on a total supply of 4 billion, the theoretical fully diluted market cap is $283.76 million.
### Price Prediction:
#### Short-term Prediction:
- Market Sentiment: According to discussions on X and community feedback, $USUAL seems to have gained significant attention and optimistic expectations. Some users believe its price may break $1 in the short term.
- TVL Growth: The total value locked (TVL) in Usual is rapidly growing, a trend that may drive price increases as more TVL means higher protocol revenue sharing.
- Prediction: If the current growth trend and market enthusiasm continue, $USUAL may test the psychological resistance level of $1 in the short term, possibly reaching a range of $1.20 to $1.50.
#### Medium to Long-term Prediction:
- Market Competition: Although $USUAL has a unique value proposition, competition in the stablecoin market is very intense. Long-term success depends on the ability to continue increasing TVL, expanding market share, and community engagement.
- Technological Development: If Usual can effectively launch new features or integrate RWA more broadly, it may further drive its price upwards.
- Prediction:
- Optimistic Scenario: If Usual can successfully challenge the leaders in the existing stablecoin market, $USUAL may reach or exceed a price of $2 in the long term, based on its potential market penetration and protocol growth.
- Conservative Scenario: If growth slows or market interest decreases, the price may stabilize around current levels, between $0.5 and $1.
#### Risk Factors:
- Market Volatility: Overall volatility in the cryptocurrency market may affect the price of $USUAL.
- Regulatory Risks: Stablecoins are particularly under regulatory scrutiny, and any new regulations or policy changes could impact their valuation.
- Internal Factors: The development of the protocol, the execution capabilities of the team, and any potential technical or security issues may impact the price.
### Conclusion:
While there are many positive factors supporting the price increase of $USUAL, cryptocurrency investments always come with high risks. Investors should conduct thorough research, considering the unpredictability of the market and the execution risks of the project itself. The above predictions are based on current data and market sentiment, but actual conditions may vary due to various factors.
$USUAL represents an attempt to create a fairer financial ecosystem by redistributing the profits of stablecoins back to the community. It has a unique RWA support mechanism and governance token economy, but to succeed in the market, it needs to continuously promote community engagement and education while facing competition from existing stablecoins. Investors should carefully assess its potential risks and rewards.
