TRON’s USDD 2.0 Sparks Investor Confidence: Tron Price to Surge?

Earlier on January 15, Tron founder Justin Sun announced the release of USDD 2.0, a reworked Tron decentralized stablecoin. Most noteworthy about this announcement was that USDD users would see as much as a 20% APY, with all generated interest sent to a transparent on-chain address. Can Tron price action see some growth amid this?

Addressing concerns about how Tron plans to sustain such a high yield, Sun said they had plenty of money where the yield comes from.

While his remarks were bold, they also generated excitement and skepticism within the crypto space, as some investors are confident in Tron’s financial structure. However, some weren’t so sure about these potentially high returns.

Since its launch, USDD has claimed to be a stablecoin inside the Tron ecosystem. It operates as a decentralized, newly minted stablecoin that can compete against leading assets like Tether (USDT) and USD Coin (USDC).

In particular, USDD 2.0 aims to beef up its stability and transparency and improve the yield mechanism. This move could cement TRON’s leadership in stablecoin settlements if successfully implemented.

TRON’s Daily Transfer Volume Hits $3.6 Trillion

Besides the USDD 2.0 announcement, on January 15, Tron saw a huge wave in USDD transaction volume, reaching $3.6 trillion in daily USD transfers. This is the second-most daily transfer amount recorded on the network, further cementing its increasing place in the blockchain world.

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Significant announcements related to the TRON ecosystem have aligned during historical spikes in transaction activity. With the timing of the surge, investors were happy with the USDD 2.0 news and took advantage of a chance to buy ahead of more news.

For quite some time, Tron has been a major player in stablecoin transactions. Low fees and fast settlement ensure it transfers large volumes of USDT and USDC. According to the latest data, Tron is still one of the most utilized blockchains for remittances, payments, and DeFi applications.

Rising Adoption: Active Addresses on TRON Continue to Surge

Tron’s user engagement metrics also imply sustained growth beyond transaction volumes. On the other hand, the number of daily active addresses on the Tron blockchain is steadily growing, which is certainly a sign of a healthy and growing userbase. This further reinforces Tron’s viability as a long-term project due to its ability to bring onboard retail and institution users.

This is significant because rising active addresses are organically driven and not speculative network-driven based on price movements.

The more users you have on the network, the more utility and engagement you have. This can translate into helping within the Tron ecosystem to support things like DeFi protocols, NFT projects, stablecoin settlements, and more.

Tron Price Action

From a technical standpoint, Tron’s (TRX) price has been trading in a bullish structure, riding the force of strong on-chain fundamentals. With TRX/USDT resting above key moving average levels, we can see there has seemingly been additional accumulation from investors.

The three SMAs (50 SMA, 100 SMA, and 200 SMA) are all up, indicating that TRX is on the uptrend across these timeframes.

The volume oscillator indicates increased trading activity related to both retail and institutional traders. That’s TRON price’s fundamental strength: its transaction volumes and active addresses have increased.