The Tron ecosystem had a major blow last week when the USDD stablecoin lost its $1 peg. This led to concerns among traders as USDD was launched last month as a rival to Terra’s UST, an algorithmic stablecoin. Another depegging of a similar asset also meant that TRX’s price also dropped for a bit therafter.
USDD’s New Low
On Sunday, USDD fell to its new low of $0.93 before regaining the $0.95 zone. As of writing, the stablecoin is trading at $0.95, down 0.70% in the last 24 hours, according to CoinMarketCap.
More importantly, USDD lost a market cap of around $19 million in the last one week. From having a market size of $715 million on June 13 to dropping to $696 million currently, the stablecoin depegging clearly had an impact.
In fact, the stablecoin failed to gain on its market cap on a daily basis only once before last week’s setback. But for a minor blip on June 2, USDD had a steady increase in market cap ever since its launch on May 5.
Currently, the total collateral value supporting USDD stands at $2.34 billion, which includes 14,040 BTC and $1.08 billion in USDC.
“No mechanism even to hold peg in, just random money issued with an informal “collateralisation” which does nothing to keep peg.”
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.