News

Tron’s TRX Slumps Nearly 20% As USDD De-peg Deepens

Tron's native token, TRX, fell sharply in the past 24 hours as the blockchain's USDD stablecoin broke away from its dollar peg. 
Published by
Tron’s TRX Slumps Nearly 20% As USDD De-peg Deepens

Tron’s native token, TRX, fell sharply in the past 24 hours as the blockchain’s USDD stablecoin broke away from its dollar peg. 

TRX slumped as much as 19%, and is now trading at $0.05- its lowest in 15 months. The token is also the worst performer among the top 50 cryptocurrencies in the past 24 hours.

Weakness in the token comes in the wake of the USDD algorithmic stablecoin losing its dollar peg, despite multiple efforts by founder Justin Sun to support the peg.

Advertisement

USDD de-pegs amid crypto chaos

According to Coinmarketcap data, USDD slumped as low as $0.9598, after trading below its dollar peg for over two days. 

The token’s total market capitalization has also fallen by about 1% in the past 24 hours to $701.4 million. Given its algorithmic nature, the token has drawn comparisons with Terra’s UST stablecoin, which crashed into oblivion in May.

But Tron, like Terra, is mobilizing billions of dollars to support the token. Crypto analysts also argue that because USDD is not as big as UST- which was worth nearly $20 billion at its peak- it may not share a similar fate.

Tron’s Sun had also recently modified USDD to increase its collateralization and make it less vulnerable to a crash like Terra.

Advertisement

Tron mobilizes funds for USDD, TRX

Tron deployed around $700 million this week to support the USDD peg by buying the token on the open market. Justin Sun also said a $2.5 billion fund would be mobilized to support TRX.

Tron has repeatedly bought TRX to support the token, recently withdrawing about 948 million ($47 million) from Binance. The Tron DAO has made multiple withdrawals from Binance, and has also mobilized its USDC holdings to buy more tokens.

Tron has also announced a mining pool with Curve Finance and Convex Finance that has projected an APR of 96.25%- which is expected to attract yield-hungry traders.

In order to further incentivize buying of USDD, Tron is offering a 113.38% APR for staking the token.

Advertisement
Share
Tanvi Singh

Tanvi is a journalism graduate from Delhi university. She has a keen interest in finance. As a newbie in the journalism world, Tanvi is learning and exploring the field. She plans to be an anchor in the upcoming years. In her free time, you can find her exploring nature & grooving in music and books. She can be reached at tanvi@coingape.com

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and 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.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • News

Analyst Slams S&P’s ‘B-’ Rating for Strategy Inc, Says Bitcoin Treasury Model Is “Misunderstood”

Crypto market analyst Adam Livingston has sharply criticized S&P Global Ratings after the agency assigned…

October 28, 2025
  • News

Metamask Airdrop Countdown Begins as Wallet Team Registers Token Claim Domain

In a fresh development, a newly registered claim domain has led to speculations that the…

October 27, 2025
  • News

$2.5T Citigroup Partners With Coinbase to Enable Stablecoin Payments

Citigroup, a top U.S. bank with $2.5 trillion asset under management has partnered with Coinbase.…

October 27, 2025
  • News

Who Will Be the Next Fed Chair? Scott Bessent Confirms Final Five Candidates

U.S. Treasury Secretary Scott Bessent has confirmed the final shortlist of contenders to replace Jerome…

October 27, 2025
  • News

Mt. Gox Delays Repayments to 2026 as Trump-Backed American Bitcoin Adds 1,414 BTC

Mt. Gox has once again pushed back its long-awaited Bitcoin (BTC) creditor repayments by a…

October 27, 2025
  • News

Crypto ETFs Attract $1B in Fresh Capital Ahead of Expected Fed Rate Cut This Week

Crypto ETFs record nearly $1 billion in weekly inflows. This marks one of the strongest…

October 27, 2025