According to reports, the stablecoin USDD crypto belonging to the TRON network recently dropped to $0.96 per unit. This further dip surfaced days after Tron DAO Reserve deployed vast quantities of USDC to shore up the reserve’s security. Tron’s USDD continues to fall lesser than $1 equivalency following the allocation of about 500m USDC into its DAO Reserve.
Recall that the entire crypto market which recorded a big downturn last Monday has begun to improve gradually. The stablecoin USDD for instance dropped to $0.977 per unit on Monday amid the severe loss suffered throughout the day. More so, ever since the incident with the Terra blockchain, crypto enthusiasts grossly focus their attention on Tron’s stable coin USDD. However, despite the improvement in the market, the stablecoin USDD still consistently endures a downturn.
Bitcoin also dropped below $21k on Monday evening, a price slightly above its 2017 all-time price high. However, as of Tuesday, crypto prices began to witness slight improvement. Although USDD still trades below $1 equivalence. As of press time, the stablecoin USDD exchange rate is between $0.9567 and $0.9838 per unit, according to coinmarketcap. It reportedly recorded $0.974253 per token as of 3:45am on Tuesday.
What led to the consistent dip in stablecoin USDD
The palpable dip reportedly manifested after the Tron DAO reserve concluded allocation of millions of USDC. This effort was geared towards protecting the token $1 price. DAO in a release confirmed the allocation of about 650,000,000 USDC supply of Tron to secure the broad blockchain enterprise and crypto market. The current supply of TRON in circulation, as of now is $2.5billion.
However, the founder of Tron network, Justin Sun made a tweet on Tuesday as regards the USDD movement against tether. The founder believes the coin possesses the capacity to come up to about 50/50 within 24 hours. Justin hinted at the recovery of 2pool by 55/45 balance. He further relayed the data attached to the stablecoin operation on the TRON network.
As of 7:30am on Wednesday, Tron DAO reserve website reveals the reserve collateral ratio as 246.26%. This approximately amount to $1,781,291,610, while 723,321,764,USDD stays in circulation. However, the collateral support of USDD’s peg consists of Tron(TRX) as there is 10.87 billion TRX and 14040 Bitcoin as well.
Furthermore, 140 million USDT is currently held by the reserve and 500 million USDC is also documented in the Tron DAO reserve ledger. Stablecoin USDD website revealed that USDD is more collateralized than other stable coins displayed. Other stablecoins are collateralized by 100% reserves while DAI is over-collateralized by 120%.