While stablecoins were the most reliable member of the cryptocurrency industry, it has recently become the most volatile member. Beyond this volatile, stablecoins have even become among the most feared assets. The reason for this was, of course, the collapse of the ‘algorithmic stablecoin’ TerraUSD (UST), which had a major crash in May. Directed by Justin Sun USDD also recently lost its peg to $1.
USDD, owned by the Tron network, has recently lost $1 in value, mobilizing the community. The USDD has been showing high volatility lately, trading at $0.97 at the time of writing. Although the stablecoin price reached the level of $ 0.9758 during the day, it fell to the lowest level of $ 0.9673.
As can be seen in the chart above, the stablecoin price recorded high volatility and sharp price drops. Indeed, the price gained support at the $0.974 level.
As Koinfinans.com reported, the USDD price did not depreciate for the first time. The stablecoin price has been stable before, as a result, causing concern in the community.
For example, in November, it lost its fixed value with the bankruptcy of the FTX exchange. It recorded its lowest price on June 19 at $0.9255.
Presented as an over-collateralized stablecoin, USDD has managed to recover all of these dips. Additionally, the liquidity pool in Curve’s decentralized finance protocol was 86% in USDD. Others, such as DAI, were calculated at 6.658%, USDC 5.80% and USDT 5.59%.
Did USDD Affect TRON Price?
It looks like Justin Sun’s TRX price also had issues. The depreciation of USDD, TRON also lowered the price. At the time of writing, TRX was trading at $0.05233, down 4.52% daily. The altcoin fell from $ 0.05475 to $ 0.05211.
USDD depegging at $0.97 now, trx dumping in reaction pic.twitter.com/KHVMB4W13n
— frxresearch 🔶 (@frxresearch) December 12, 2022
However, it should be noted that the entire market is in decline. The price of nearly every asset has lost value as part of continued declines.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.