Can Tron Fill The Hole In DeFi Left By Terra?
Tron (TRX) token has come out as the top gainer among major cryptocurrencies in May. The blockchain appears to be among the few that stood their ground amid the massive market crash last week. The TRX token has managed to surge by 20% in the last 30 days, while Bitcoin (BTC) is still down by 19% in the same time.
With the introduction of its own algorithmic stablecoin (USDD), Tron is now the fourth-largest DeFi blockchain by total value locked (TVL).
Tron TVL up by 5% in last 30 days
The Tron chain’s total locked value has registered a whopping growth of over 5% in the last 1 month. Its TVL now stands at $4.31 Billion. Tron is now positioned at the 4th spot among the top TVL holder.
Meanwhile, the chain’s TVL has registered a marginal growth of 0.02% in the past 7 days. The last 2 weeks saw a huge debacle when the Terra chain and its related tokens lost their complete value. The Terra used to hold a TVL of over $30 Billion. On May 8, 2022, when the crypto market started to tumble, the terra was still holding a TVL of $24.7 Billion. However, it now just holds the locked value of $162.7 million.
Tron held the highest TVL of $6.7 Billion in November 2021. However, after the collapse of Terra a huge opportunity has opened up for the Tron Chain to capture the market.
Are USDD and UST similar?
Just a week before the collapse of TerraUSD, Tron came up with its stablecoin USDD with a similar algorithm. The industry experts even call out the project to some extent. The newly launched USDD and collapsed UST have the same burn mechanism and don’t have a minting limit. Tron has a similar plan to assemble a $10 Billion reserve fund for its stablecoin. The majority of the reserve will be holding BTC similar to UST.
Earlier, Tron announced that it has increased its reserves. The addition included a diversity of digital assets. Over $82.3 million worth of BTC, $181.6 million worth of TRX and $295.2 million of USDT were added to the fund.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.