Coinbase Announces NEST Listing, Here’s How it Competes with LINK
Following the change to its listing process, Coinbase announced the addition of the NEST Protocol to its platform. It revealed that trading would commence once liquidity conditions were met with the NEST/USD and NEST/USDT trading pairs to be launched in phases.
Furthermore, Coinbase said it would add NEST under its experimental label for digital assets. According to the exchange, cryptocurrencies under this label are usually new and have relatively lower volumes than the crypto market. However, while caution is recommended when trading them, the title does not hinder their purchase, sale, or storage on the platform.
NEST Protocol: A Chainlink Competition
NEST Protocol is a decentralized oracle network built on Ethereum’s ERC-20 network. The NEST token powers the platform, which enables users to get price data for decentralized finance (DeFi) assets, including stablecoins and futures.
The recently launched protocol is similar to Chainlink, which claims to be the current oracle standard within the digital asset space. However, it differs in that it collects information directly on-chain rather than from external sources through a process known as quotation mining.
To fully understand the NEST protocol, it is critical to grasp the intricacies of oracles and quotation mining. Firstly, blockchain oracles are entities that connect the blockchain to external systems. They enable smart contracts to execute based on inputs and outputs from the real world.
Secondly, quotation mining is the price reference system upon which Nest Protocol is built. Anyone can utilize the quote system and participate using NEST tokens, which serve as financial incentives within the network. This fosters a trustless system, which is essential to the whole idea of DeFi and encourages a more evenly distributed network.
According to the platform’s whitepaper, Nest Protocol seeks to eliminate one of the most significant issues facing Dapp developers, accessing reliable data. DeFi protocols depend on precise and timely price information to enable them to offer their services to the market. However, the platform provides an open protocol that allows anyone to start a price flow while encouraging price providers to mint their tokens. It says:
“Since price is verified on-chain, NEST has provided an open and transparent ecosystem for everyone. One of the most important points is openness: anyone can start a price information flow and motivate price providers to mint any kind of token. For example, a project can set up the price pair of its own token to USDT and motivate others to provide price information by rewarding them with this token. This would help any project to expand the number of minters in its ecosystem.”
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NEST Gains Following Listing
Following its listing on Coinbase, the NEST token recorded a significant surge in its price. The token started trading yesterday at $0.034. However, its anticipated listing saw its value rise by as much as 12% to hit $0.039.
After the surge, the NEST token slumped, as seen in the chart above. It plunged from $0.039 to $0.0326 before rebounding and reaching $0.035. Despite the apparent fluctuation, reports suggest that the outlook for the digital asset remains bullish.
Currently, the NEST protocol is ranked 249 on Coinmarketcap, with a market valuation of $103.6 million. Its total supply is 10 billion NEST, but its circulating supply stands at 2.91 billion NEST.
Do you think that the NEST protocol would prove a viable challenger to Chainlink’s dominance of the blockchain oracle subsector? Let us know your thoughts in the comments below.