Irreversible tokens (NFTs) and high-capital decentralized financing platforms (DeFi) have been in the spotlight in the cryptocurrency sector in recent months. This close interest in the price movement of NFT, DeFi and Bitcoin (BTC) means that some investors have noticed the fact that it was a series of positive changes in stable currencies that helped launch the bull market for 2021.
One project that has quietly made great headway this year is Reserve Rights, which is a stable, dual-token coin platform where all tokens are backed by a basket of smart contract-based cryptocurrencies.
Data from Cointelegraph Markets and TradingView shows that the platform’s reserve rights symbol (RSR) has increased by more than 320% since January 1, rising from $ 0.0196 to a new full-time $ 0.829 on March 8 as the project prepares to expand its services. … to new territories.
4 hour RSR / USDT chart. Source: TradingView
Three reasons for the strong growth of the RSR in 2021 are the global adoption of stablecoins as a viable tender, which exacerbates global economic conditions, leading to hyperinflation in countries where the Reserve Fund focuses its activities, optimism about the launch of the main network of the Reserve Fund and many trends Major future development. …
The stablecoins get the approval mark
On January 4, the US Treasury announced that banks would be allowed to operate independent contract for distributed ledger networks and conduct stable currency transactions.
Since the approval, stablecoin projects such as Reserve, MakerDAO, Terra and Curve DAO have seen volume inflows while easing regulatory concerns.
Hyperinflation creates a real use case
The other major driving force behind the recent rise in RSR is deteriorating economic conditions in countries facing hyperinflation. Capital controls are usually implemented in places associated with uncontrolled hyperinflation, but this does not prevent residents from trying to store their savings in more stable assets.
Venezuela was one of the first countries to focus the reserve on its early growth, as the local currency, Bolivar, has rapidly lost its purchasing power in recent years.
The team said that users in Venezuela can now use the Reserve app as a way to convert their fortunes into a more stable currency like the US dollar, and trade with it as needed.
With the announcement that the Reserve app will be open to all Venezuelans on hold, RSR has increased regularly and the reserve user base has grown.
Argentina, Colombia, and Panama can also endure economic hardship and hyperinflation, which means there is no shortage of users to take advantage of accessing the platform.
Company-wide adoption rumors drive up the RSR
There are a few notable events yet to happen, but it appears to have a positive effect on the RSR price.
Numerous communications between PayPal and members of the Reserve team have always been the source of rumors of future integrations with the payment giant. PayPal integration plans were recently approved by the Reserve team, but the exact details have yet to be announced.
Investors also appear to be excited about the upcoming launch of Reserve Minutes, which co-founder Nevin Freeman said has an unspecified date set in 2021.
Market conditions have been favorable for the RSR for some time, according to Cointelegraph Markets Pro.
The VORTECS score, excluding the Cointelegraph, is a mathematical comparison of historical and current market conditions derived from a set of data points, including market sentiment, trading volume, recent price movements, and Twitter activity.
VORTECS ™ (green) indicates the RSR rate. Source: Cointelegraph Markets Pro
As shown in the chart above, the ORTECS ™ reading of the RSR began to rally on March 2 when it hit 65 ahead of the short-term price advance on March 3. It turned green for the RSR on March 4 before peaking at 70. March. About seven hours before the price rises by 45% over the next two days.
The outlook for the global economy has improved after developing many COVID-19 vaccines, but many challenges still have to be overcome, hyperinflation and recession are just a few of them. Analysts expect the hoarding coins to continue gaining momentum now as they merge into conventional finance and are seen as a minor threat from central banks.
This means that the reserve protocol is well positioned for future growth because it provides its growing user base with one of the most important uses for which Bitcoin was originally designed: beating banks.