Usual USD (USD0) Price Prediction

TLDR
USD0 navigates regulatory crosswinds while expanding utility.

1. Regulatory Scrutiny – Anchorage delisting highlights compliance risks, pressuring institutional adoption.
2. Multichain Growth – TAC integration and yield incentives (40%+ APY) drive DeFi demand.
3. RWA Competition – Dominance of USDT/USDC limits upside despite sector growth.

Deep Dive

1. Regulatory Headwinds (Bearish Impact)

Overview: Anchorage Digital’s June 2025 delisting of USD0, citing “concentration risks,” reflects tightening oversight under the U.S. GENIUS Act and EU MiCA. While USD0’s Paris base insulates it from some U.S. pressures, its $600M market cap trails USDC ($61B), making liquidity fragmentation a risk if other custodians follow Anchorage.

What this means: Reduced institutional access could weaken demand for USD0 in regulated DeFi pools. However, the protocol’s weekly $156K rewards for locked stakers (@usualmoney) may offset short-term sell pressure.

2. Adoption via Yield & Cross-Chain Expansion (Bullish Impact)

Overview: USD0’s August 2025 deployment on TAC via LayerZero enables multichain liquidity mining. Coupled with 40-44% APY for long-term USUALx lockers, this expands use cases beyond Ethereum-based DeFi.

What this means: Higher yield utility could increase protocol revenue (paid in USD0) and stabilize its peg. The TAC Vault’s migration (details) also reduces slippage risks, improving capital efficiency.

3. RWA Sector Dynamics (Mixed Impact)

Overview: While tokenized Treasuries grew 544% YTD, USD0 holds just 0.27% of the $224B fiat-backed stablecoin market. Its US T-Bill backing offers transparency but faces competition from BlackRock’s BUIDL fund and synthetic yield rivals like Ethena’s USDt.

What this means: Niche positioning limits upside, but real-world asset tokenization tailwinds (per CoinGecko) could attract risk-averse capital if macro volatility spikes.

Conclusion

USD0’s price stability hinges on balancing regulatory compliance with DeFi yield innovation. While cross-chain growth and high APYs bolster demand, institutional retreats like Anchorage’s pose liquidity risks. Will MiCA-compliant reserve reporting widen USD0’s EU adoption gap versus USDC?