According to Wu BlockchainOver the last 30-days, TRON has experienced a rise in its total value locked. This increase seems to be related to the launch of this network’s native algorithmic stablecoin USDD.
Similar Reading: Tether CTO Statements that USDT-Dollar is Strong Despite Stablecoin Crises| Tether CTO Says, USDT-Dollar Remains Strong Amid Stablecoin Crises
As reported by NewsBTC a month ago, TRON’s founder Justin Sun announced the deployment of USDD for May 5, 2022. This digital asset operates similarly to LUNA CLASSIC network’s Anchor Protocol. USDD users can earn 30% annual percentage yields (APY), by staking on the JustLend platform.
To capitalize on this success, TRON created its own stablecoin algo. However, May has seen a massive LUNA-UST (Terra Classic’s algo stablecoin) which has impacted the crypto industry.
TRON appears to be unaffected by the UST decline and crash in LUNA prices. DeFi Llama’s data confirms the rise in TVL.
The total amount is $6 billion, with an 14% rise in the last week. TRON’s TVL has grown beyond that of Polygon, Avalanche, Solana, and Fantom. This trend could continue, and the TVL for Binance Smart Chain will surpass $9 billion.
DeFi Llama provided additional data that indicates JustLend has the highest percentage of TVL. The platform records $2.8 billion in TVL followed by JustStables’s $1.4 billion.
JustLend and algo stablecoin appear to have quickly taken control of TRON’s ecosystem, pushing it up to number 3 in TVL across all DeFi sectors. This indicates that stablecoins are still popular in crypto space despite events at Terra Classic.
Can TRON’s USDD Survive After The Events On Terra Classic
A pseudonymous analyst examined USDD and TRON last week to see if this new digital asset could withstand the current market conditions. An analyst explained the implications of the Terra Classic network collapse and how it affected all-algo stabilitycoins.
Analysts believe USDD is in a better place than its network. Analyst claims that the TRON-based stablecoin is supported mainly by insiders.
There could still be room for investors, retail included. As it appears, this could be a benefit to TRX and the ecosystem. According to the analyst:
USDD: It’s still in the early stages and only a few insiders have access to it. Before it faces the same risks and dangers as Luna, there is still room for latecomers. In musical chairs, timing is key. USDD mcap is at only 2.5% of UST’s peak.
In addition, the analyst believes that USDD doesn’t operate exactly like UST but “is actually more like Maker” with a different collateralization mechanism but with the buying pressure for TRX. Comparable to other assets, the altcoin has performed well.
TRON Joins Stablecoin Wars Will Launch USDD With 30% APY, Here Is When| TRON Joins Stablecoin Wars Will Launch USDD With 30% APY, Here Is When
TRX’s trades at $0.08 with sideways movement in 24-hours. TRX rallied on the back its algo stablecoin, despite the negative price action of larger cryptocurrency cryptocurrencies.
