Tron’s USDD Remains Below the $1 Parity for 24 Hours, Token Hits a Low at $0.95 per Unit
Tron’s stablecoin USDD has remained below the $1 parity for well over 24 hours and around 3:00 a.m. (ET), USDD hit a low of $0.958 per unit. The Tron DAO Reserve has deployed more tron tokens and USDC to defend the peg and the DAO’s reserve web page shows the coin is overcollaterized by 314% at the time of writing.
Tron’s USDD Has Been Unable to Surpass $0.98 During the Past 24 Hours
The stablecoin USDD, issued on the Tron blockchain, is an algorithmic stablecoin that also leverages overcollateralization to hold a $1 peg. However, USDD has not been able to keep the $1 parity over the last 24 hours, and the price has wobbled during the last 72 hours. On Monday, USDD showed signs of weakness, slipping just below the $1 parity, and then on Tuesday, the value of USDD hit a low of $0.974 per unit.
On Wednesday, the Tron DAO Reserve deployed more USDC and TRX to help defend the peg. “To safeguard the overall blockchain industry and crypto market, Tron DAO Reserve has transferred 100 million USDC on Tron to Binance to purchase TRX,” the organization tweeted. Not too long after that tweet, the Tron DAO Reserve wrote: “To safeguard the overall blockchain industry and crypto market, TRON DAO Reserve will withdraw 2.5 billion TRX out of Binance.”
Tron Founder Tells DAO Reserve to ‘Keep Withdrawing,’ While Supporters Claim It’s Not Fair to Compare USDD With UST
As the Tron DAO Reserve withdrew more assets to add to the collateral, Tron’s founder Justin Sun wrote: “Keep withdrawing,” like a captain at the helm. Speculation and concerns about USDD are swirling constantly on forums and social media and the tokens celsius network (CEL) and Tron’s USDD are the most searched coins on coingecko.com during the last 24 hours. Throughout the thick of it, speculation concerning USDD collapsing and comparing USDD to terrausd (UST) is some of the most prominent conversation.
However, some USDD supporters believe the discussions and speculation surrounding Tron’s stablecoin stem from fear, uncertainty, and doubt (FUD) tactics. “There’s so much FUD about Tron [and] USDD as people compare them to LUNA [and] UST,” the Twitter account Thanx Finance wrote on Wednesday. “Wake up, it’s not gonna collapse, just check the stats and buy the dip. 300% + total collateral ratio. 700 [million] USDD supply [is less than the] 4.5B TRX [market capitalization],” the Tron supporter added.
At the time of writing, USDD is swapping for $0.974 per unit, but it has not been able to surpass $0.987 during the past 24 hours.
What do you think about Tron’s USDD falling to $0.95 on Wednesday? Let us know what you think about this subject in the comments section below.