Tron’s USDD!
Tron happens to be a popular blockchain-based operating system, which focuses on creation of decentralized applications and share media content. TRX token, one of the cryptocurrencies of Tron is created, to gain the access features of the operating system on the Tron Protocol. Factually, TRX originated from Ethereum Blockchain, but then were later dissolved to form a separate token on its own with its own blockchain. Tron also took a brave step by launching UST’s competition called USDD. USDD is also decentralized algorithmic stablecoin which happens to be the core of Terra’s UST.
USDD and its peg!
USDD is believed to be pegged at 1:1 with the US Dollar and will be in maintaining its peg in the similar fashion as of Terra’s USD. In the trade in Tron, when the stablecoin gets depegged to a value of less than $1 then, the user will be allowed to swap USDD for exactly $1 worth TRX token. When the value rises more than $1, a user can acquire TRX worth $1 and swap the same for USDD. The functions are similar in nature with Terra’s stable coin UST and its relations with its sister token LUNA.
USDD’s growth in comparison to UST!
Tron went on to make a carbon copy of Terra’s UST. But, to market’s surprise the market capitalization of Tron’s USDD crossed over $550 million within a week. Even the crypto market implosion didn’t affect the market capitalization rate of the stablecoin. Ironically, the value of the stablecoin doubled in value amidst the market crash. In comparison, Terra’s USD, which was launched in November 2020, could only get a value of $150 million in the first four weeks, in terms of market capitalization.
Investor’s Optimism on Tron!
Even though crypto investors all around the world lost billions of dollars in the market by investing in Terra’s USD, the wave of high market capitalization for Tron makes it quite clear that, the investors didn’t learn from their experiences and are being overtly optimistic about the stablecoin. As we know, before the crash, UST was the world’s largest algorithmic stablecoin with a market capitalization of over $18 billion, with its sister token LUNA being one of the top 10 cryptocurrencies in the world, a crypto market like the one which swiped billions recently had a major and non-recoverable impact on Terra’s UST.
Writer’s Report!
It is true that both the stable coins showed good results in the first weeks of market capitalization. But Terra stumbled and crashed in a crypto market implosion, to a level where it is drowning in the ocean of the market. Will Tron have the same fate as Terra or will Tron be able to take the stable coin to become one of the largest algorithmic stablecoin in the world, only time can tell!
