NewsletterTRON Increases Reserves As USDD Stays De-pegged
TRON DAO has increased its stablecoin reserves to safeguard the blockchain as the USDD continued to trade below its peg.
The reserve increased its supply of USDC tokens by 300 million on the blockchain. The current supply now sums up to $2.8 billion.
USDD, which was launched earlier this year, was intended to be an algorithmic stablecoin. But it then overcollateralized to prevent a crash like Terra’s UST.
Collateralization Rate Reaches 300%
With the increase in the reserve, the USDD’s collateralization rate has reached 324.53%. After the announcement, a marginal increase in the token price has been noticed.
At the press time, TRX is trading at an average price of $0.060. The token price has jumped by 1.57% in 24 hours.
TRON’s stablecoin is currently trading at $0.97. The price has increased by 0.19% in the last 24 hours.
This measure was taken to shield the USDD from further de-pegging.
The TRON token had experienced a fall of nearly 20% in its price earlier this week. The de-pegging of the stablecoin is believed to be one of the reasons behind this slump.
However, the token was recorded as the biggest gainer last month, largely due to the hefty 30% yield offered by USDD.
The blockchain has announced earlier that it will withdraw 3 billion TRX out of the Cefi exchange and Defi lending platform.
By doing these withdrawals TRON blockchain is trying to reduce liquidity for short sellers, closing their positions.
TRON Aims For $ 3 Billion reserve
Justin Sun, CEO of the blockchain has hinted that this $2.8 billion reserve will to stretch up to $3 billion. This is not the first instance when the millions have been added to the reserve with an aim to save its stabelcoin.
Earlier this month, another $100 million was injected into the reserve. This was the first transfer done by the TRON in order stop its stablecoin from meeting the fate of TERRA LUNA.
According to CoinGecko’s data ,USDD has recorded has recorded a growth of 126% in its market capital in past 30 days.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Crypto Traders Increase Bets on Kevin Warsh After Trump Names Top Two Fed Chair Candidates
- This Top CNBC Trader Says He’ll “Never” Invest in XRP Despite Wall Street Adoption
- ‘Dead Like Kodak’: Software Engineer Slams SWIFT’s 5-Year Delay on Blockchain Plans
- Ripple Attracts $300M Institutional Bet as VivoPower Launches Korean Investment Vehicle
- Crypto Eyes Entry into Traditional Sports as Tether Bids $1B for Juventus FC
- Will Bittensor Price Break Above $400 After First TAO Halving Tomorrow?
- Expert Predicts Bitcoin Price Crash to $75k as ETF Inflows Fall, Treasury Companies Plunge 83%
- HYPE Price Jumps 8% as Open Interest Hits $1.61B — Is $50 Next?
- Is Solana Price Poised for a +50% Bullish Rally? Here’s What to Expect
- Top 3 Price Predictions for Bitcoin, Ethereum, and XRP in DEC 2025
- Will Chainlink Price Break Toward $20 After 84K LINK Reserve Increase?
