This crypto market crash is a harsh one for the entire crypto community. Many people are abandoning their crypto positions and waiting for the end of the downtrend. However, this crash was like no other. In the midst of the stablecoins crisis, it seems that Tron’s USDD is also struggling to keep its peg. Tron prices recovered 30% in the past 24 hours and reached a current price of 0.06. Will Tron price crash? Let’s analyze
What is TRON (TRX)?
Tron is a blockchain that aims to improve transaction speed. Tron promises to be able to process 2,000 transactions per second, compared to 6 and 25 transactions per second (TPS) for Bitcoin and Ethereum, respectively. It’s a decentralized platform for knowledge exchange and entertainment. In 2018, Tron bought BitTorrent, a prominent file-sharing service. The project launched its algorithmic stabelcoin which was marketed as a success.
However, after the UST crash and Tether’s current bad media, even stablecoins became risky. Investors started liquidating and withdrawing their capital from exchanges, which in turn started halting withdrawals. This took a heavy toll on USDD, which started to lose its peg, thus affecting TRON prices.
Why did Tron crypto crash?
Tron price managed to hold above the price of $0.08 and consolidated despite the crashing market. However, the unpeg of USDD shook the Tron community as the same thing happened when UST, another algorithmic stablecoin crashed in the same way. The Tron foundation managed to pull some strings and deployed more capital for USDD to regain its peg. However many skeptics are still terrified of the LUNA crash incidents.
Tron prices fell to a low of $0.046 before recovering back to the current price of $0.06. Despite this small pump, many investors still think that prices are going to crash. Will Tron price crash after this fake pump is over?
Tron Price Prediction – will Tron price crash and reach 0 $?
There are many similarities between Tron and Terra. Despite the many projects already being deployed on the Tron ecosystem, it doesn’t help to say that Tron will not crash as Terra also had many projects working on its blockchain. From a technical perspective, Tron prices are risky. If prices don’t manage to break the $0.065 price area soon, Tron risks crashing again to the low price of $0.045. From there, if the market continues to crash, prices will continue lower, and the LUNA crash incident might repeat for Tron.
If the crypto market recovers, there is a strong chance that Tron prices stabilize back to around $0.08, as USDD is highly influenced by crypto prices.
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Source: https://cryptoticker.io/en/tron-price-shoots-30-in-an-attempt-to-recover-whats-next-for-trx/