The stablecoin is currently trading at $0.91 as speculation mounts over its sustainability.
Algorithmic stablecoin USDN, which is designed to mimic the value of the U.S. Dollar, has fallen of its peg to $0.91.
USDN is backed by the Waves token (WAVES) and leverages the staking model of the Waves protocol’s underlying consensus algorithm.
Waves’ token is trading 3.86% lower over the past 24-hours, according to CoinGecko.
Concerns over the algorithm have previously been raised by the company’s founder Sasha Ivanov.
“We have to work on the algorithm,” Ivanov said on CoinDesk TV’s “First Mover” program in June. “And what happens now is kind of inevitable, which is just a test of the whole system.”
Algorithmic stablecoins have been in the spotlight this year following the collapse of TerraUSD (UST) and the LUNA ecosystem, which saw $83 billion in market cap evaporate in May.