{"id":30296,"date":"2022-06-20T05:33:03","date_gmt":"2022-06-20T09:33:03","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=30296"},"modified":"2022-06-20T05:33:12","modified_gmt":"2022-06-20T09:33:12","slug":"usdd-drops-to-a-new-low-depeg-deepens","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/usdd-drops-to-a-new-low-depeg-deepens\/","title":{"rendered":"USDD Drops To A New Low, Depeg Deepens"},"content":{"rendered":"\n
The market cap of USDD has significantly dropped in the last week but Tron DAO has bolster its reserve since the USDD depeg.<\/h5>\n\n\n\n
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\"\"<\/figure>\n<\/figure>\n\n\n\n

The Tron ecosystem took a significant hit last week when the USDD<\/a> stablecoin lost its $1 peg. Traders were concerned since USDD was created last month as a competitor to Terra's UST, an algorithmic stablecoin. Another depegging of a similar asset meant that TRX's price fell for a while .<\/p>\n\n\n\n

On Sunday, the US dropped to a new low of $0.93 before reclaiming the $0.95 level. According to CoinMarketCap, the stablecoin is currently trading at $0.95, down 0.70 percent in the previous 24 hours.<\/p>\n\n\n\n

More crucially, USDD has lost around $19 million in market capitalization in the last week. The stablecoin de-pegging had an impact, as the market cap dropped from $715 million on June 13 to $696 million today.<\/p>\n\n\n\n

In fact, before this week's setback, stablecoin<\/a> has only ever failed to increase its market cap daily. Despite a slight wobble on June 2, the US has steadily increased in market capitalization since its introduction on May 5.<\/p>\n\n\n\n

Following the de-pegging of the stablecoin, the Tron DAO has increased its reserves to back the blockchain. The DAO boosted<\/a> its USDC supply by 300 million last week.<\/p>\n\n\n\n

The total collateral value supporting the stablecoin is currently $2.34 billion, consisting of 14,040 BTC and $1.08 billion USDC. The Tron DAO intends to safeguard the stability and security of USDD by maintaining a collateral ratio of 323.23 percent.<\/p>\n\n\n\n

The Tron team claims that the over-collateralization of numerous prominent cryptocurrencies ensures the stability and security of USDD.<\/p>\n\n\n\n

The recent drop to $0.93 in the USDD depeg generated alarm in the crypto community, recalling the UST meltdown. On Twitter, a trader known as ‘Austerity Sucks' inquired if there was any mechanism in place to keep the USDD pegged\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>.<\/p>\n\n\n\n

“No mechanism even to hold the peg in, just random money issued with an informal \u201ccollateralization\u201d which does nothing to keep the peg.\u201d<\/p><\/blockquote><\/figure>\n\n\n\n

Tron is currently trading at $0.06, a 0.52 percent decrease in the last 24 hours.<\/p>\n","protected":false},"excerpt":{"rendered":"

The market cap of USDD has significantly dropped in the last week but Tron DAO has bolster its reserve since the USDD depeg. The Tron ecosystem took a significant hit last week when the USDD stablecoin lost its $1 peg. Traders were concerned since USDD was created last month as a competitor to Terra’s UST, […]<\/p>\n","protected":false},"author":33,"featured_media":30298,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-30296","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/06\/700-million-is-put-into-USDD-Stablecoin-by-TRON.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/30296","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=30296"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/30296\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/30298"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=30296"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=30296"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=30296"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}