Why TRON Has Seen a 45% Hike in Total Value Locked (TVL)
31 May 2022 - 04:00AM
NEWSBTC
According to Wu Blockchain, the TRON network has seen a hike in its
total value locked (TVL) over the past 30-days. This increase seems
to be related to the launch of this network’s native algorithmic
stablecoin USDD. Related Reading | Tether CTO Says,
USDT-Dollar Remains Strong Amid Stablecoin Crises As reported by
NewsBTC a month ago, TRON’s founder Justin Sun announced the
deployment of USDD for May 5, 2022. This digital asset operates
similarly to LUNA CLASSIC network’s Anchor Protocol. USDD allows
users to earn a 30% annual percentage yield (APY) for staking it on
the JustLend platform. TRON launched its own algo stablecoin to
capitalize on the popularity of this product. However, May has seen
a massive LUNA-UST (Terra Classic’s algo stablecoin) which has
impacted the crypto industry. The crash in the price of LUNA and
the UST deppeged appears to have little impact on TRON. Data from
DeFi Llama supports the increase in TVL. This number stands at $6
billion with a 14% increase in the past week alone. TRON’s TVL has
grown beyond that of Polygon, Avalanche, Solana, and Fantom. If the
trend continues, the metric could surpass the TVL on Binance Smart
Chain which currently sits at almost $9 billion. Further data
provided by DeFi Llama indicates JustLend is the protocol with the
percentage of TVL. The platform records $2.8 billion in TVL
followed by JustStables’s $1.4 billion. In a short period of time,
JustLend and the algo stablecoin seem to have taken over the TRON
ecosystem pushing it to the top 3 in TVL across the DeFi sector.
This seems to suggest that algo stablecoin still are very popular
in the crypto space, despite the events on the Terra Classic
network. Can TRON’s USDD Survive After The Events On Terra Classic
Last week, a pseudonym analyst looked into USDD and the TRON
ecosystem to determine if the new digital asset can withstand
current market conditions. The analyst pointed at the collapse in
the old Terra Classic network and its implications for all-algo
stablecoins. However, the analyst believes USDD and its network are
in a different state. Right now, the TRON-based algo stablecoin,
the analyst claims, is mainly supported by insiders. Therefore,
there could be room for retail and other investor classes to adopt
USDD. This could benefit TRX and its ecosystem, as it seems to have
recently. The analyst said: (USDD) It is in its fairly early
stages, with only insiders in. There is room for latecomers and
eventually even retail to enter before it carries the same risks as
Luna. Timing is everything in musical chairs. USDD mcap is at only
2.5% of UST’s peak. In addition, the analyst believes that USDD
doesn’t operate exactly like UST but “is actually more like Maker”
with a different collateralization mechanism but with the buying
pressure for TRX. The altcoin has been performing well compared to
other assets. Related Reading | TRON Joins Stablecoin Wars
Will Launch USDD With 30% APY, Here Is When TRX’s trades at $0.08
with sideways movement in 24-hours. Despite the downside price
action in larger cryptocurrencies, TRX has been able to rally on
the back of its algo stablecoin.
Avalanche (COIN:AVAXUSD)
Historical Stock Chart
From Feb 2024 to Mar 2024
Avalanche (COIN:AVAXUSD)
Historical Stock Chart
From Mar 2023 to Mar 2024