News

Can Tron Fill The Hole In DeFi Left By Terra?

Published by

Tron (TRX) token has come out as the top gainer among major cryptocurrencies in May. The blockchain appears to be among the few that stood their ground amid the massive market crash last week. The TRX token has managed to surge by 20% in the last 30 days, while Bitcoin (BTC) is still down by 19% in the same time.

With the introduction of its own algorithmic stablecoin (USDD), Tron is now the fourth-largest DeFi blockchain by total value locked (TVL).

Tron TVL up by 5% in last 30 days

The Tron chain’s total locked value  has registered a whopping growth of over 5% in the last 1 month. Its TVL now stands at $4.31 Billion. Tron is now positioned at the 4th spot among the top TVL holder.

Meanwhile, the chain’s TVL has registered a marginal growth of 0.02% in the past 7 days. The last 2 weeks saw a huge debacle when the Terra chain and its related tokens lost their complete value. The Terra used to hold a TVL of over $30 Billion. On May 8, 2022, when the crypto market started to tumble, the terra was still holding a TVL of $24.7 Billion. However, it now just holds the locked value of $162.7 million.

Tron held the highest TVL of $6.7 Billion in November 2021. However, after the collapse of Terra a huge opportunity has opened up for the Tron Chain to capture the market.

Are USDD and UST similar?

Just a week before the collapse of TerraUSD, Tron came up with its stablecoin USDD with a similar algorithm. The industry experts even call out the project to some extent. The newly launched USDD and collapsed UST have the same burn mechanism and don’t have a minting limit. Tron has a similar plan to assemble a $10 Billion reserve fund for its stablecoin. The majority of the reserve will be holding BTC similar to UST.

Earlier, Tron announced that it has increased its reserves. The addition included a diversity of digital assets. Over $82.3 million worth of BTC, $181.6 million worth of TRX and $295.2 million of USDT were added to the fund.

Ashish Kumar

Ashish believes in Decentralisation and has a keen interest in evolving Blockchain technology, Cryptocurrency ecosystem, and NFTs. He aims to create awareness around the growing Crypto industry through his writings and analysis. When he is not writing, he is playing video games, watching some thriller movie, or is out for some outdoor sports. Reach me at Ashish@coingape.com

Share
Published by

Recent Posts

  • News

Breaking: Court Orders Liquidation Of Three Arrows Capital

Crypto hedge fund Three Arrows Capital (3AC) has reportedly plunged into liquidation, as per Sky…

June 29, 2022
  • News

This Crypto Winter Suite Could Help Investors In Bear Market

Swiss-based crypto products firm 21Shares on Wednesday said it has launched its Crypto Winter Suite…

June 29, 2022
  • News

When Will Crypto Markets Recover? Former Coinbase Exec Weighs In

Tom Loverro, a long-time crypto investor who formerly served on exchange Coinbase's board, says it…

June 29, 2022
  • News

Terra USTC Price Skyrockets By 75%; Will It Recover More?

Terra’s collapsed tokens TerraClassicUSD (USTC) and Terra Classic (LUNC) which triggered the crypto market crash…

June 29, 2022
  • News

Does Celsius Owe $174 Mln To Voyager Digital?

Nansen CEO Alex Svanevik on Wednesday revealed that Celsius received large amounts of funds from…

June 29, 2022
  • Uncategorized

As Bitcoin Goes Below $20K, Stats Show How Close Is Bottom

Amid much hype of buying the dip at current prices and market reaching its bottom…

June 29, 2022