Even though TRON (TRX) prices were having a better performance amid the recent crash, they have dropped by more than 16 percent in the last 24 hours.
TRON head, Justin Sun has planned to spend more than $2 billion to defend and gain support. When the USDD stablecoin lost its peg for a short time, Tron used $700 million to back up the stablecoin and keep redemptions going.
TRON DAO Receives 700 Million USDC
In a tweet, Justin Sun pointed out that the funding rate of shorting TRX tokens on Binance, the largest cryptocurrency trading platform in the world, is 500 percent ARP. The amount they said they would give will help them fight it. He also said that this won’t last for even a day.
The TRON DAO said that they have received 700 million USDC to help deal with the situation. The USDD peg will be protected with this amount. It also said that the rate of its collateralization is close to 300 percent. In another update, it said that DAO has added 100 million USDC to the Binance to buy more TRX.
The identical de-pegging defense did not work properly for Terra’s UST, according to Mikko Ohtamaa, Co-founder at Trading Protocol.
TRON’s one-month-old stablecoin USDD has de-pegged from its intended dollar value. Over the last 24 hours, it has fallen by almost 2% to trade at $0.982. Despite the incredibly turbulent market conditions, the USD has been able to grow. However, the demise of TerraClassicUSD has left a significant void in the cryptocurrency market. The total market circulation of the USDD has surpassed 723 million.
Sun previously stated that their reserve is actively purchasing more cryptocurrency in these turbulent market conditions. When the market stabilizes, he will add the reserve to the public speech. TRON DAO recently purchased $50 million in Bitcoin and TRK for the reserve.
TRX is currently trading at an average price of $0.0641 at the time of publication. Tron prices have dropped by 26 percent in the last seven days. TRON total value locked (TVL) has likewise dropped by more than 25% in the previous 24 hours. With a TVL of $4.35 billion, it remains the third-largest chain.
