The USDD continues to wander below the dollar after losing parity. However, it seems that things are changing for the TRON stablecoin.
Another fall for Tron’s stablecoin
In the list of struggling stablecoins, the USDD remains in a good place. The room, which is destined to the same fate as Terra as their similarities are great, has been far from being in good shape since last week. The crypto sphere believed the predictions were correct when the new TRON token lost parity with the dollar.
Unfortunately, the situation does not seem to be improving. Indeed, the USDD is moving further and further away from its promised value, peaking over the past weekend. The fall was brutal and the stablecoin fell around $0.93, no doubt the victim of a wave of massive reselling.
As the legitimacy of the stablecoin begins to be questioned and many other coins of the same type fall in turn, the TRON team is far from giving up. According to the TRON reserve, the USDD would not have really lost its parity with the dollar. In fact, he couldn’t even.
USDD is a decentralized stablecoin that relies on an on-chain mechanism and collateralized assets, unlike centralized stablecoins, like USDC, which are very tightly tied to the USD through bank minting and redemption .
Excerpt from TRON Reserve Twitter FAQ
But then how to explain the phenomenon? According to the reserve, stablecoins remain exposed to volatility. It would therefore be the latter that would have caused the USDD to fall. It would be, for the moment, only 3%.
A small change remains visible on the course of the USDD
Is this bad patch ending for TRON’s stablecoin? The price of the coin seems to confirm this since an uptrend is already taking shape. It only remains to be seen if this will continue or if it was only a temporary burst. However, the USDD seems to be slowly recovering to its value of four days ago, before the disaster last weekend.
Again, time seems to be cryptocurrency’s best friend. The coin is still very young and still needs to build itself within the ecosystem. The TRON team seems to be actively working on securing the USDD so that it does not suffer another downfall. Still, it will take a lot of effort to keep the token going through the crypto winter, especially since public skepticism is still present. Finally, according to TRON’s DAO reserve, the means available are currently sufficient to survive in the medium term and not to be carried away by the wave of liquidation that is affecting certain players in the crypto sphere. In effect, the USDD page reports an over-collateralization of more than 300% with more than one billion USDC in reserve, more than the USDD currently in circulation.
The future will therefore tell us if the stablecoin will have won its bet or if it will have become an aborted project by the force of the market.
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USDD: the stablecoin is still struggling to regain parity with the dollar – BeinCrypto International
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