Following the crypto market carnage on Monday, the following day crypto prices have shown some improvement. However, Tron’s stablecoin USDD has once again dropped to $0.974 per unit, indicating a small amount of instability continues to plague the fiat-pegged token. The dip to $0.97 follows Monday’s deviation from the parity and comes after the Tron DAO Reserve deployed large quantities of USDC to shore up the reserve’s defense.
Tron’s USDD Stablecoin Continues to Remain Lower Than the $1 Parity, Tron DAO Reserve Deploys 500M USDC
Many cryptocurrency supporters are watching Tron’s stablecoin USDD very closely after the incident that took place within the Terra blockchain ecosystem. On June 13, the algorithmic stablecoin slipped to $0.977 per unit while crypto markets suffered extreme losses throughout the day.
During the evening trading sessions on Monday, bitcoin’s (BTC) price fell below $21K and held just above 2017’s all-time price high. On Tuesday, crypto prices have seen a slight improvement but USDD is still under the $1 parity.
For the current market extreme condition, @trondaoreserve has received another 500 million USDC to defend #USDD peg. Now USDD collateralization rate is 310%. https://t.co/3ZdRvCB0rD pic.twitter.com/z0PXqPXKhu
— TRON DAO Reserve (@trondaoreserve) June 14, 2022
At the time of writing, USDD is swapping for values between $0.978 and $0.98 per unit, but hit a low on Tuesday at $0.974253 per token. The most recent low is a touch lower than the drop recorded the day prior, and it happened at 3:45 a.m. (ET) on Tuesday.
The drop happened after the Tron DAO reserve decided to deploy millions of USDC to defend the token’s $1 parity. “To safeguard the overall blockchain industry and crypto market, Tron DAO reserve have increased 650,000,000 USDC supply on TRON,” the organization explained. “Currently USDC supply on TRON has reached $2.5 billion.”
Sun stands out with (at least) two major moves: withdrawing $500 milly and $150 milly in USDC from Aave from two different wallets (which still have $1.3 billy in them)
Look at the $26 network fee to withdraw from a protocol and transfer half a billy! Take that, Western Union pic.twitter.com/2xw08RXzBG
— Andrew T (@Blockanalia) June 13, 2022
People are concerned about USDD because it is similar to Terra’s former stablecoin UST which saw a slight de-pegging the day before it dive-bombed toward $0.704 per unit on May 9, 2022. On Tuesday, Tron’s…
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