UChain, a layer 1 blockchain, has continued to trend sideways despite the market downtrend. $UCN, the native crypto of the chain, is currently trading at approximately $864 and has a market capitalization of around $86 million.
Extreme scarcity has been cited as one of the reasons for UCN’s ongoing consolidation, alongside its utility-centric focus.
Limited Supply Leveraging Supply-Demand Narrative
UChain has a limited supply of 100,000, which is 210 times smaller than Bitcoin. UChain’s block explorer has revealed that no more tokens can be minted, as developers have renounced contract ownership.
On top of that, 50% of the total supply is locked in staking, which further limits the supply to give UCN a hyper deflationary model.
Diversified Ecosystem of UChain
UChain offers multiple features that official documents say are meant for everyday use. These include:
- UTrading offers automated trading bots for BTC/USDT and UCN/USDT pairs on MEXC, BingX, and HTX. It features a return cap by license tier, which means once users hit the cap, the bot stops.
- UWallet is a non-custodial wallet that supports over 20 cryptocurrencies. It is integrated with UDefender for cold storage.
- UDefender is a hardware NFT wallet holding part of the mnemonic phrase. Transactions are confirmed by tapping the UCard on a smartphone.
- UCard is a crypto debit card used for leveraging crypto for daily transactions. It is integrated with Apple and Google Pay. Transactions are limited to €10,000 daily and €100,000 monthly.
UCN Token Utility Explained
$UCN serves three functions within the UChain ecosystem. First, it is used for gas fees, which UChain implements as bandwidth points. Second is staking, which gives users additional network resources, voting rights, and governance participation. Finally, governance involves selecting 27 super representatives who validate transactions and, in return, earn block rewards.
Upcoming Features of UChain
According to the official documentation, additional features are coming. These include UTrading expansion, NFT functionality based on the URC-721 standard, and a multi-wallet management feature alongside the full UWallet release.
Final Thoughts
$UCN’s continued consolidation despite the market downtrend is seen as a net positive for a utility-centric ecosystem. It could be possible for the crypto to maintain its current momentum or even surge if the macroeconomic conditions become conducive.
Source: https://coingape.com/uchain-trends-sideways-despite-market-downtrend/
