USDD Continues To Lose Its Peg, Rates Slip To $0.92!
USDD, Tron’s stablecoin continues to lose pegs once again after it slipped from its $1 rate a week ago. This raises many concerns that TRON will follow in the footsteps of LUNA when the operating methods of USDD and UST are the same.
The introduction of USDD to the market in April 2022 was rather interesting. It is designed to be a native stablecoin to the Tron blockchain, but one with an algorithmic design. As we have seen recently with UST, algorithmic stablecoins are hit-and-miss. It appears USDD falls in the “miss” category right now, due to its ongoing depeg from the $1 value.
And finally, what the “Troners” were most worried about came, on June 13 USDD slipped from the $1 rate for the first time and recorded as low as $0.95 on June 14 and 15. After the Tron DAO pumped 1.2 billion to the rescue, Tron’s stablecoin recovered to $0.98 but has yet to return to the $1 peg.
And today, the latest on record, the stablecoin has lost the peg once again, to a greater degree than a few hours ago it fell $0.92, down more than 7% in value from its peg of $1. At the time of writing, the price has recovered to $0.948, but it is likely that this event will continue to happen as the $1 close area has almost “lost hope” for more than a week now.
Similar to what happened to UST, USDD is deviating from its peg to the US Dollar. Although users can massively redeem USDD for USD, the price isn’t restoring itself in the slightest. If anything, it continues to drift lower and lower. Since nearing the $1 peg, it has dropped to $0.99, $0.97, and even $0.95 in quick succession. That may not seem like a big difference, but it shouldn’t even exist in the first place.
And it is obvious that TRON is being affected significantly by USDD similar to LUNA and UST. At the time USDD lost its peg severely, TRON was down over 37% of its value. Despite Bitcoin’s rally above $20,000 and other altcoins like ETH with 27% and SOL with 26%, TRON is up only 3%. At the time of writing, the price of TRON is up 1% compared to 24 hours ago.
Given what happened to UST, that return to the peg is not a guarantee. If anything, USDD may be the next stablecoin to go from $0.01 to $0.05 and lower in a few weeks. Developments like these will not get more people interested in algorithmic stablecoins but rather turn off people from the industry altogether. CoinCu will continue to update news related to this event.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
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Harold
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USDD Continues To Lose Its Peg, Rates Slip To $0.92!
USDD, Tron’s stablecoin continues to lose pegs once again after it slipped from its $1 rate a week ago. This raises many concerns that TRON will follow in the footsteps of LUNA when the operating methods of USDD and UST are the same.
The introduction of USDD to the market in April 2022 was rather interesting. It is designed to be a native stablecoin to the Tron blockchain, but one with an algorithmic design. As we have seen recently with UST, algorithmic stablecoins are hit-and-miss. It appears USDD falls in the “miss” category right now, due to its ongoing depeg from the $1 value.
And finally, what the “Troners” were most worried about came, on June 13 USDD slipped from the $1 rate for the first time and recorded as low as $0.95 on June 14 and 15. After the Tron DAO pumped 1.2 billion to the rescue, Tron’s stablecoin recovered to $0.98 but has yet to return to the $1 peg.
And today, the latest on record, the stablecoin has lost the peg once again, to a greater degree than a few hours ago it fell $0.92, down more than 7% in value from its peg of $1. At the time of writing, the price has recovered to $0.948, but it is likely that this event will continue to happen as the $1 close area has almost “lost hope” for more than a week now.
Similar to what happened to UST, USDD is deviating from its peg to the US Dollar. Although users can massively redeem USDD for USD, the price isn’t restoring itself in the slightest. If anything, it continues to drift lower and lower. Since nearing the $1 peg, it has dropped to $0.99, $0.97, and even $0.95 in quick succession. That may not seem like a big difference, but it shouldn’t even exist in the first place.
And it is obvious that TRON is being affected significantly by USDD similar to LUNA and UST. At the time USDD lost its peg severely, TRON was down over 37% of its value. Despite Bitcoin’s rally above $20,000 and other altcoins like ETH with 27% and SOL with 26%, TRON is up only 3%. At the time of writing, the price of TRON is up 1% compared to 24 hours ago.
Given what happened to UST, that return to the peg is not a guarantee. If anything, USDD may be the next stablecoin to go from $0.01 to $0.05 and lower in a few weeks. Developments like these will not get more people interested in algorithmic stablecoins but rather turn off people from the industry altogether. CoinCu will continue to update news related to this event.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Harold
CoinCu News
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