Tron Sees a 45% Rise in its TVL After the Launch of its Stablecoin USDD
- Tron’s TVL reached the $6 billion mark,
- Tron TVL has risen despite the bearish condition of the economy,
- USDD gets positive reception among investors.
Tron’s Total Value Locked (TVL) witnessed a 45% surge and reached $6 billion following its launch of stablecoin USDD. Amidst an increasingly volatile crypto market following TerraUSD crash, Tron’s launch of New Stablecoin USDD was viewed with extra suspicion. Cryptocurrency technical analyst Duo Nine, after reviewing the status of USDD had even questioned if it is at all a stablecoin or just another cryptocurrency.
USDD was introduced in April, and later it took to rise in early May. USSD, an algorithmic stablecoin was launched on Binance, Ethereum, and Tron. The stablecoin rewards arbitrageurs to keep its price closely pegged to that of the dollar by trading between TRX, TRON’s token, and USDD, sharing similarities with Terra’s UST. However, the collapse of UST, despite it staying as the top stablecoin in the market has raised people’s guard with respect to investing in Stablecoins. USDD- a nascent coin that has defied expectations and has been successfull in attracting investors. USSD’s increased value is bound to enhance Tron TVL. Only Ethereum and Binance Stablecoins are ahead of it now.
Tron founder Justin Sun early May had said that he sees USDD as becoming “just like bitcoin” — except that its price, in theory, will be aligned with that of the dollar. He had also expressed his desire to build stablecoins that are resistant to interference by regulators. “I believe in the next five to 10 years, crypto will be settled by decentralized stablecoins”, stated Sun.
Tron DAO had crossed the USD 8 billion mark in its Tron TVL in March after publishing an update. The value was considered high in the bullish market when it attracted enough investors’ funds. When the market has been facing one crash after another, the current Tron TVL value enhancement is seen as a considerable increase. Tron DAO is now the third-largest blockchain in terms of TVL.
With this development, USDD had successfully bashed criticism of it being not “decentralized properly”. During its launch, many crypto analysers accused USDD of lacking transparency. Proving the critics wrong, USSD is now on its path to becoming bigger than other major stablecoins in the market. Currently, Tron is making its attempts to become the core of the decentralized web. With Tron TVL’s enhanced value and USDD’s increased attraction among investors, the stablecoin market is expected to recover slowly from its string of setbacks.