Tron (TRX) token seems to not be swayed by the wind of the market when it gained over 20% to become the top gainer among major cryptocurrencies in May.
The blockchain appears to be one of the few technologies that survived last week’s big market crisis. The TRX token has increased by 20% in the last 30 days, while Bitcoin (BTC) has decreased by 19%.
Trx is now the fourth-largest DeFi blockchain by total value locked (TVL), due to the launch of its algorithmic stablecoin (USDD).
Tron TVL has increased by 5% in 30 daysÂ
Tron chain’s total locked value has increased by more than 5% in the last month. It now has a TVL of $4.31 billion. Tron now holds the fourth spot among the top TVL holders.
Meanwhile, the chain’s TVL has increased by 0.02% during the last seven days. The Terra chain and its related tokens have lost all of their value in the last two weeks. Terra formerly had a TVL of more than $30 billion. When the crypto market began to tumble on May 8, 2022, the terra still had a TVL of $24.7 billion. However, it now holds only a locked value of $162.7 million.
In November 2021, Tron had the highest TVL of $6.7 billion. However, the collapse of Terra has created a big chance for the Tron Chain to seize the market.
Are USDD and the UST comparable?
Tron released their stablecoin USDD with a similar algorithm just a week before TerraUSD crashed. Industry experts even criticize the initiative in various ways. The newly issued USDD and the defunct UST both have the same burn mechanism and no minting restriction. Tron is also working on a $10 billion reserve fund for its stablecoin. Similar to UST, the majority of the reserve will be held in BTC.
Tron has previously announced that it had increased its reserves. A wide range of digital assets was added to the upgrade. The fund added over $82.3 million in BTC, $181.6 million in TRX, and $295.2 million in USDT.
