The global crypto market has been facing problems for a while, but some aspects have continued to improve despite difficulties. The collapse of Terra UST was one of the disastrous events that took its value to record lows and affected other coins as well. Tron TVL reached new heights amid the bearish situation of the market.
The change in the market situation after the collapse of a stablecoin was too precarious as there was little to help it. The value of various coins in the market grew further low because of the fears created by the collapse of a stablecoin. Tron launched its stablecoin in early May, but it has shown significant value growth and has set an example for other stablecoins in the market.
Here is a brief overview of how USDD grew to these highs helping Tron TVL and its implications for the market. The details are given as follows.
Tron TVL rising due to increasing USDD value
Tron’s Total Value Locked (TVL) saw significant improvement in the value due to the continuous growth of USDD value. Justin Sun introduced USDD in April, and later it took to rise in early May. This coin is meant to serve as the US Dollar or gold function as its price will see rare changes.
It is an algorithmic stablecoin that will serve like UST or any other stablecoin in the market. The collapse of UST led to significant implications because it stayed as the top stablecoin in the market. USDD was launched on Binance, Ethereum, and Tron. Its enhancing price value is supposed to increase the Tron TVL.
Though Tron has remained in the market for years, USDD is a nascent coin, but its enhancement of Tron TVL has made it a market hero. There are just two stablecoins ahead of it: Ethereum and Binance stablecoins. If it continues to soar in value, it might also cross these two.
The current value of Tron TVL is above $6 billion as USDD has continued to attract investors. It has helped this platform and the entire DeFi ecosystem, bringing a significant amount.
Soaring value in the bearish market
Tron TVL has risen amid the bearish situation when the majority of the investors have chosen to opt out. USDD is being seen as an alternative to other stablecoins that has got some serious traction. The constant expansion of this coin shows that it might be getting even bigger in bulk.
Though the stablecoins of Solana, Avalanche, and Polygon were already in the market, they have been left behind because of their value. The most value of Tron TVL USDD is in the JustLend, while there are nine other protocols on that network. These protocols also have a considerable amount if compared based on the TVL.
Tron DAO had crossed $8 billion in its Tron TVL in March after publishing an update. The value was considered a high in the bullish market when it attracted enough investors’ funds. When the market has taken a downturn, the current Tron TVL value enhancement is seen as a considerable increase.
Tron is making its attempts to become the core of the decentralized web. It relies on Digital Proof of Stake and has a lot to offer its investors. It is yet to be seen if it will be able to continue with the same gains.
Tron TVL has increased significantly, reaching $6 billion after the rise of its stablecoin USDD. The constant increase in its value suggests that it might be going even ahead of the leading stablecoins in the market. There was little expectation from this nascent coin when the market saw dips due to the collapse of UST.