The steady rise in active users, the stability of the RSV stablecoin, and investors’ anticipation of the upcoming mainnet launch could drive the price of RSR higher in the short term.
Bitcoin was created to provide the average person with a peer-to-peer economic system and store of wealth that could provide financial autonomy and access to banking services, especially for people living in places where financial services are rare or non-existent.
Over the past five years, several blockchain projects have been implemented to reflect the original mission of Bitcoin, and the growing popularity of stablecoins highlights the need for alternative financial models. One project that is slowly gaining momentum is Reserve Rights (RSR), a dual-token stablecoin platform consisting of the Reserve (RSV) asset-backed stablecoin and the RSR token, which helps support the price of a stable RSV to sustain the system. arbitrage opportunities.
Data from Cointelegraph Markets Pro and TradingView shows that while the price of RSR has declined in recent months along with the broader market, the token’s trading volume has increased dramatically recently, suggesting a possible resurgence.
RSR/USDT 1-day chart. Source: Trading View
Three reasons for the growing demand for the RSR token are the upcoming launch of the Reserve Rights mainnet, the anticipation of the token offering, and the ability of RSV to maintain its peg during the recent market volatility.
Launch of RSR Mainnet
The biggest upcoming event for Reserve Rights – and one that got its community excited – is the mainnet launch in August.
After the launch of reserve rights on the Ethereum (ETH) mainnet, all protocol features will be enabled, including the ability for anyone to create stablecoins backed by baskets of ERC-20 tokens.
Protocol stablecoins (RToken) are not only fully collateralized, but can also be insured against collateral depreciation. RTokens can also generate income for their holders, which is an incentive for RSR holders to stake their RSRs on a particular RToken.
The income of token holders comes from transaction fees, revenue sharing with collateral token issuers, and income from lending collateral tokens on the network.
The launch of the RSR mainnet will also allow for token staking. In most current staking protocols, the main function is to lock tokens in a smart contract, which prevents them from being sold by the holder, but has no real additional function for the ecosystem.
Conversely, staking on a fallback protocol has a practical benefit to the protocol, as pledging RSR tokens to a given RToken helps protect that token from concomitant defaults. This means that if one of the collateral tokens fails, the layered RSR can be confiscated to allow the RToken to keep its link.
In exchange for this risk, RToken profits are shared with RSR players to ensure proper insurance. The return offered by each RToken depends on a variety of factors, including the market capitalization of the RToken, the revenue generated by the token, the percentage of revenue shared among RSR participants, and the total RSR staked.
Related: Latin America’s Largest Digital Bank to Allocate 1% BTC and Offer Cryptocurrency Investment Services
Growing community and successful stablecoin
The third factor supporting RSR is the continued growth of its community and the ability of its RSV stablecoin to maintain its peg amid recent market volatility.
During the peak of volatility in May, when TerraUSD Classic (USTC) collapsed, the lowest price reached by RSV was $0.9923. This means that RSV holds up better than most stablecoins on the market.
Rsv price. Source: CoinGecko
In addition to staying committed to RSV, the Reserve Rights community also recently surpassed 600,000 users on the Reserve app, which now offers access to over 18,000 sellers in Latin America that accept RSV and earn over $100 million in monthly dollars per sales volume.
The team behind the protocol is also currently working on adding support for users in Mexico, which could kick-start a new group of RSV users.