Sunday, June 16, 2024

The growth of the USDD is driving Tron’s DeFi TVL, drawing comparisons to Terra’s UST.

Tron has been growing exponentially over the last few weeks and rose to $6 billion in the last months itself. In terms of TVL or total value locked it is now the 3rd largest network.

It is being outshined by the BNB chain and Ethereum only as of now. But it is to be noted that Ethereum is valued at $71.3 billion which is more than the other two combined.

Tron gained most of its value in the DeFi protocols market after the introduction of USSD. An algorithmic-based stablecoin that gained $6 billion in value over the 30 days it was launched. With the BNB Chain at $8.8 it is slowly catching up and might take over it for the second spot.

But it will still be almost 10 times smaller than Ethereum as of now. It was launched on 5th May and has seen a massive rise in adoption. USSD has a market cap of $621 million and has been a great move by Tron.

Although some people are drawing parallels between USSD and TerraUSD. Last month itself TerraUSD impeded and lost more than 90% of its value. Stablecoins depend on market arbitrage to gain and maintain their value.

While some might be critical of the coin itself, some experts have said that the USSD is not an algorithmic coin, to begin with. With the launch of USSD, Tron also saw a 24% rise in its value and now trades at $0.08.

There are plans of expansion too and it will go to other blockchains as the crypto niche grows.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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