The stability of the USDD asset of Tron DAO, another algorithmic stablecoin released after Terra’s UST, was also jeopardized as crypto markets struggle to combat a new wave of selling.
While USDD briefly lost its stability by 2 percent in the first hours of the day, the price of the reserve cryptocurrency TRX was hit hard by this situation and fell 16 percent in the same time zone.
After the collapse of the stable crypto asset of the Terra ecosystem, all eyes are on the performance of USDD. While USDD struggles to maintain its stability in the volatile market conditions, its total market capitalization remains at $716 million, with 723 million tokens in circulation, just below the $1 fixity.
The trading volume of the algorithmic stablecoin USDD, which is in the 57th place, increased by 78% in the last 24 hours to $ 288 million. Tron DAO recently announced that it has received $50 million worth of BTC and TRX to support the stability of USDD.
As adverse market conditions continued, Tron CEO Justin Sun was quick to take the stage and announced that 700 million USDC was injected to help Tron DAO maintain USDD stability. USDD, which recovered after this intervention, continued to trade at $ 0.99.
Experienced from the collapse of Terra's stablecoin, Tron DAO announced last week that USDD is 130 percent collateralized. In addition, Justin Sun announced that he will send 2 million dollars to the exchange to support TRX, which is negatively funded on the Binance exchange.
After this development, the decline of TRX, which decreased to $ 0.06, slowed down and it was seen that it rose to $ 0.064 with a 5 percent increase from the bottom price as of now. The total locked value of the Tron network in the DeFi Sector, on the other hand, decreased by 25 percent to $4.35 billion due to the exits in the market. Tron remains the 3rd largest network by current TVL size.