Huma Finance’s native token, HUMA, has experienced a significant drop of 45% in value, undoing the gains made since its launch. Despite this decline, the token continues to attract attention, with a trading volume exceeding $600 million.
The sudden decrease in HUMA’s price comes after a peak of $0.12 following its Token Generation Event on May 26. Currently trading at $0.062, the token has seen a notable decrease in value within a 24-hour period. However, trading activity remains robust, showcasing the continued interest in HUMA within the crypto community.
Huma Finance introduced its token, HUMA, through Binance Launchpool, allowing users to farm the token by staking Binance Coin (BNB), FDUSD, or USD Coin (USDC) from May 23 to May 26. Following the launch, HUMA quickly made its way to several major exchanges, including Bybit, OKX, Bitget, MEXC, Gate.io, KuCoin, and BingX.
During the Token Generation Event, Huma Finance also initiated the claim window for its Season 1 airdrop, setting aside 5% of the total token supply for early adopters. The claiming period will remain open for a month, with a second airdrop, covering 2.1% of the supply, scheduled for approximately three months post TGE.
What sets Huma Finance apart is its innovative financial infrastructure known as the PayFi Stack. This system aims to revolutionize traditional finance by introducing faster, programmable, and globally accessible alternatives. The PayFi Stack comprises six core layers, each playing a crucial role in supporting blockchain-based financial applications seamlessly.
At the foundation lies the transaction layer, utilizing Layer 1 and Layer 2 blockchains for secure and efficient transactions. The currency layer manages digital currencies, particularly stablecoins like USDC and PYUSD, ensuring stability and compliance. The custody layer focuses on secure asset management, while the compliance layer handles regulatory requirements such as KYC and AML.
The financing layer enables on-chain capital markets, connecting fund supply with demand and allowing the tokenization of real-world assets. Finally, the application layer empowers developers to build various financial products leveraging the capabilities of the lower layers.
HUMA plays a vital role within the Huma Finance ecosystem as a governance token, used for staking, rewarding participants, and driving ecosystem growth. Holding or staking HUMA can also offer eligibility for future airdrops, with the second distribution planned approximately three months after the TGE. With its unique approach to financial infrastructure, Huma Finance continues to make waves in the crypto space, despite the recent price drop.