Tron’s Stablecoin USDD Records a 6-Month Low – Is USTC 2.0 Underway?
After Terra’s UST, Tron’s stablecoin depegs massively which may be an aftermath of the collapse of a popular exchange FTX
USDN appears to be in deep trouble as the aftermath of the collapse has heated up the stablecoins which are thriving to defend their peg against the bearish influence
Tron’s decentralized algorithmic stablecoin USDD and Waves’s Neutrino USDN are de-pegging heavily. Algorithmic stablecoins have been a major subject of worry ever since the Terra ecosystem failed to defend the UST peg and caused a major market crash, halving many assets.
Along with USDD, the Waves stablecoin USDN also plunged hard by nearly 5% and marked monthly lows around $0.75, which is now trading around $0.818. The USDN’s market capitalization also dropped significantly by nearly 5% to reach the level of around $556.8 million. On the other hand, the trading volume has spiked by more than 200% which signifies the trader’s distrust over the asset as they could be creating massive selling pressure.
This massive drop came after the Digital Asser Exchange Association (DAXA), a leading crypto exchange in Korea, issued a warning about Waves. Besides, USDD has been de-pegging for quite a long time accompanied by a steady increase in the stablecoin’s dominance rate in the USDD/3CRV liquidity pool on the curve.
However, Tron’s CEO, Justin Sun deployed more capital to defend the USDD peg, claiming that the stablecoin has a collateral of over 200%.
Meanwhile, Waves issued a statement on DAXA and said that they recognize the common due diligence requirements from Upbit and Bithumb. The team is closely working to resolve the issue in a coming couple of weeks.