The once highly regarded DeFi project Usual ($USUAL) is facing severe challenges. The total value locked (TVL) of this stablecoin newcomer has plummeted sharply from a peak of $1.8 billion to $645 million, a staggering fall. More concerning is that approximately $390 million of the current TVL comes from circulating loans, a practice that artificially manipulates data and has raised market concerns about Usual's actual value.

Usual initially attracted a large amount of investment through the concepts of RWA tokenization and decentralized governance. However, as market enthusiasm waned, the project's weaknesses gradually became apparent. The biggest issue is that Usual has failed to build substantial ecosystem partnerships. Whether with mainstream public chains, cross-chain bridges, or other DeFi protocols, Usual's collaborations are almost non-existent. Currently, the project mainly relies on a single mining mechanism to maintain operations, lacking diversified application scenarios, and has seemingly become an "island" in the blockchain world.
The USD0 stablecoin issued by Usual has also failed to stand out in the fierce market competition. Under the pressure of industry giants like Tether and USDC, the adoption rate of USD0 remains sluggish, making it difficult to expand its market share. Community members have started to question the long-term development prospects of the project: if the Total Value Locked continues to shrink, the potential risks of circulating loans will be further amplified, potentially leading the project into an irretrievable predicament.
In the face of the current difficulties, whether Usual can revive is still unknown. If the project hopes to turn the tide, it must quickly bring in strategic partners to enrich the ecosystem applications; otherwise, it may be difficult to escape the fate of decline. For investors, closely following the project's subsequent developments and cautiously assessing risks is particularly important.
The cryptocurrency market is constantly changing, and the case of Usual reminds us once again that even a once popular project can quickly lose market favor. This not only tests the adaptability of the project team but also raises higher demands on the judgment of investors.