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NEST Protocol Fundamental Analysis
NEST is an ERC-20 token native to Nest Protocol, a blockchain oracle providing a uniquely secure way to get real-world price data into the DeFi ecosystem. Nest Protocol appeared on the market in 2020.
Nest Protocol differs from other oracles by employing a verification system. First, the quote is submitted for verification by a miner, along with a handling fee in ETH and the quoted assets in an appropriate proportion: e.g., if a miner says that 1 ETH = 100 USDT, he or she must lock 1 ETH and 100 USDT in a smart contract with the price. Then a verificator either trades the assets if there’s an arbitrage opportunity or leaves it as is. In the latter case, the quote makes it into a price block on the chain. After the verification period, the miner can withdraw his or her assets from the contract. Miners and verificators are rewarded with the portion of the fee paid by the oracle customers for their data requests. Since the submissions that went through arbitrage are rejected, the miners are incentivized to quote prices as close to the real market as possible, otherwise, they lose both the commission and the fee paid on submission. Except for this handling fee, the payments within the network are made in NEST, which also serves as a governance token.
NEST Protocol Live Price Chart
Nest Protocol started trading in July 2020 approximately at $0.03. The price soared in August 2020, as NEST got listed at more and more exchanges, riding the wave of DeFi popularity. This growth was probably compounded by the anticipation of Cointelegraph China’s big DeFi conference (which took place in September of the same year), and NEST’s price reached the all-time high of $0.2382 on August 10, 2020. After that, the price declined sharply, though, by mid-September reaching ~$0.05 – $0.06. Various strategic partnerships failed to restart an uptrend for NEST’s price: later the same year it fell further to ~$0.02 – $0.03 and stayed there until the beginning of 2021. Crypto bull run in the first months of 2021 buoyed NEST’s price somewhat, allowing it to break the $0.05 barrier and even reach $0.07 at some point. By late May 2021, though, the price fell to the new lows of ~$0.01, where it’s been staying at least until the middle of the summer.