Between June 13 and June 27, or roughly two weeks, Tron’s USDD stablecoin fell below parity $1 and slid to a low of $0.928 per unit on June 19. Over the past seven days, the USDD has managed to rally back to $0.98 to region $0.99 while hitting $1 on July 3.
Tron’s Stablecoin USDD Rebounds Above $0.98 Per Unit
The stablecoin USDDissued above the Tron network, saw its value slip below the typical $1 parity it held before June 13. Prior to that day, the stablecoin’s chart looked like an electrocardiogram flat line holding a stable value of around $0.994 to $1.
Between June 13 on the 15th, however, the USDD fiat value slipped to a low of $0.964 per unit. At that time, the Tron Reserve DAO backed the stablecoin with crypto assets such as tron (TRX) and usd coin (USDC). Meanwhile, bitcoin (BTC) and a number of other top crypto assets have dropped significantly in value.
On June 18, the crypto-economy simmered and around 2 p.m. (ET), BTC bottomed out in 2022 at $17,593 per unit. The next day, Tron’s USDD hit an all-time low for the stablecoin at $0.928 per unit.
Eight days later, on June 27, the USDD managed to get back into the $0.98 to $0.99 range, and it has been trading at that price ever since, with a brief peak at $1 per unit on the 3rd. July. While the stablecoin had a two-week run below the normal rate, the Tron Reserve DAO continued to add more collateral to the project.
At the time of writing, the project reserve page notes that there are 723.32 million USDD outstanding. The webpage details that the USDD is overcollateralized by 313.5% at the time of writing, with four different crypto assets backing the draft.
Assets include 10.874 billion tron, 14,040.6 bitcoins, 140 million tether and 990 million coins. When the USDD saw a lower than normal price value for two weeks during the crypto market downturn, a few other stablecoins also fell to lower than normal values.
Top 9 Stablecoins by Market Cap Remain Stable
News Bitcoin.com reported on Abracadabra’s MIM stablecoin sliding to $0.91 and Waves neutrino stablecoin usd (USDN) sliding to $0.931 per unit. While the USDD has maintained a stable price range over the past week, the USDN is trading hands for $0.987 while the MIM is trading for $0.993.
The Tron Reserve DAO continued to bolster the stablecoin is backed by reserves and this has been redeem USDD with assets as well. Stablecoins have it all examples seen where the value of the coin is below the expected parity of $1. However, stablecoins like nubits, empty set dollar, titan and core cash have all failed and the recent terrausd (UST) implosion caused a lot of concern and worry about the possibility of more stable failures.
The concern has been directed at some of the largest stablecoins in the industry and many of the smaller cap stablecoins with less liquidity. During this time, the nine best stablecoins in terms of market valuation, have been flat this week, trading between $0.98 and $1 per token.
What do you think of the USDD returning to the $0.98-$0.99 region? Let us know what you think about this topic in the comments section below.
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