Canto’s Growth Signals Bright Future for Decentralized Infrastructure

• Canto is a Layer-1 decentralized token that recently experienced a sudden rise in price.
• Some investors are speculating that this could be due to an increase in the volume of Note, a quasi-stablecoin issued by Canto and pegged to USDT/USDC.
• However, members of the Canto discord community have dismissed this speculation, noting that Note is 100% collateralized, in contrast to the TerraUSD/UST algorithmic stablecoin which collapsed in 2022 due to a lack of collateral.

The digital asset industry has experienced a surge of activity in recent months, with many projects gaining widespread adoption and their respective tokens experiencing significant gains in value. One of those projects is Canto, a Layer-1 decentralized token running on the Ethereum Virtual Machine, which provides Tendermint consensus secured by validator nodes with EVM executions via Cosmos SDK. Canto’s has developed a business model it calls “Free Public Infrastructure”, which is likened to free parking on a city street, and which includes a zero-fee DEX for liquidity providers and a Canto lending market (CLM) for users.

However, some investors have been concerned about the sudden rise in Canto’s price and have speculated that it could be due to an increase in the volume of Note, a quasi-stablecoin issued by Canto and pegged to USDT/USDC. This speculation has caused some to suggest that Note may not be as healthy as it appears, given the similarities to the TerraUSD/UST algorithmic stablecoin, which collapsed in 2022 after its peg fell short resulting in a run on nearly $45 billion worth of assets.

However, members in the Canto discord community have downplayed these concerns and reassured the community that Note is indeed healthy and secure. They note that unlike the TerraUSD/UST algorithmic stablecoin, Note is 100% collateralized, which provides a higher level of security and stability. Furthermore, Canto’s decentralized trifecta of offerings, which includes its DEX, lending market, and Note, provides users with a comprehensive suite of financial services that is secure and reliable.

Ultimately, Canto’s recent rise in price is likely due to the overall increase in activity in the digital asset industry, as well as investors’ recognition of its comprehensive suite of offerings. The community’s confidence in the health and security of Note should also help to allay any fears or concerns that the rise in price could be attributed to any instability in the quasi-stablecoin. Overall, Canto’s growth is an encouraging sign for the digital asset industry and a testament to the power of decentralized infrastructure.

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