Is Tron (TRX) crypto declining on USDD dollar de-pegging news?


The Tron (TRX) crypto was on investors’ radar Wednesday after its stablecoin USDD lost its dollar-pegged price this week amid a slump in the overall market. The TRX price declined more than 7%, while its volume in the last 24 hours rose over 33%.

On Monday, the USDD price fell to as low as US$0.91 as investors assessed the effect of higher inflation and tightening monetary policy in the financial market.

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What is Tron (TRX) crypto?

Tron is a decentralized operating system based on blockchain technology. Tron Foundation launched the project in 2017. Its native token, TRX, was originally an ERC-20 token, but later it moved to its network. It trades on several exchanges like KuCoin, Binance, Bitfinex, etc.

It was initially created to provide full ownership rights to digital content creators. It helps content creators earn more by providing higher rewards for their work.

The TRON software supports smart contracts, blockchain systems, and decentralized applications (DApps). It uses a transaction model, UTXO, similar to Bitcoin (BTC). The users can track operation history as the transactions on the blockchain take place in a public ledger.

Also Read: Why is Gala (GALA) crypto gaining attention?

What is happening to USDD?

Tron founder Justin Sun said on Monday that the Tron blockchain’s native token TRX has a negative 500% APR on Binance. He added that the Tron Dao Reserve would deploy US$2 billion to tackle it.

Tron Dao Reserve on Tuesday said that it has received “another 500 million USDC” to defend its dollar-pegged USDD price. According to its tweet, the USDD collateralization rate is 310%.

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The USDD price fell 0.97% to US$0.9699 at 8:18 am ET on June 15, while its volume in the last 24 hours declined 43.46% to US$150.41 million.

TRX holders were closely watching USDD after a similar fall last month. Investors may be concerned over USDD’s performance after Terra’s former stablecoin UST dropped from its dollar-pegged price last month to around US$0.704 on May 9.

Also Read: Chain (XCN) crypto plummets 50%; can it rise again?

Data Source: CoinMarketCap.com

Bottom line:

The TRX token was priced at US$0.05431 at 8:31 am ET on June 15, down 7.32%, while its volume in the last 24 hours rose 33.99% to US$2.25 billion. It has a market cap of US$5.02 billion, and its fully-diluted market cap is US$4.75 billion.

The token’s total and current circulating supply is around 92.52 billion. It saw the highest price of US$0.09094 and the lowest price of US$0.04744 in the last 30 days.

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