The algorithmic stablecoin for the terra ecosystem, UST, witnessed a massive decline last week. The collapse shed a negative light on the safety of stablecoin, especially those pegged on an algorithm.
However, despite the negativity, the USDD stablecoin developed by the Tron network seems to be exhibiting growth. The stablecoin is recording a steady growth and stability, and it shows the potential to fill the gap left by UST.
USDD stablecoin has a chance for growth
The TRON DAO Reserve launched the USDD stablecoin just a few days before UST witnessed a massive decline. When Tron’s founder, Justin Sun, revealed the launch of the stablecoin, some crypto community members pointed out the similarities between USDD and UST.
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USDD has recorded a notable increase in daily volumes during the past few days. The increase stems from a slight dip in stablecoin activity after investors were spooked by the collapse of UST. The crash of UST caused losses for stablecoins and the entire market.
Data from CoinMarketCap shows that the circulating supply for the USDD stablecoin increased by $173 million within five days. This is massive growth, given that on May 15, USDD had a supply of $4.73 million. The USDD market cap has also grown significantly to surpass $300 million.
USDD stablecoin listed on top exchanges
The growth of the USDD stablecoin has also attracted the attention of leading cryptocurrency exchanges. According to the announcement, Gate.io listed the stablecoin on Friday, and the coin is expected to list on LBank on May 23.
KuCoin has also listed the stablecoin, and it is trading under the USDD/USDT and USDD/USDC pairs. The USDD stablecoin is backed by Bitcoin, tether and TRX reserves. The stablecoin runs on the Tron blockchain, and it is also linked to the Ethereum and BNB Chain.
Moreover, the network is also planning to extend its reach to other networks. The USDD stablecoin is pegged to the US dollar, and it offers stability by maintaining a decentralized digital dollar system that offers financial freedom.
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Source: https://insidebitcoins.com/news/trons-usdd-stablecoin-witnesses-massive-growth-in-a-few-days