Tron’s Stablecoin USDD Deviates From the $1 Peg, Justin Sun Says Team Deployed More Capital – Altcoins Bitcoin News

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Tron's Stablecoin USDD Deviates Away From the $1 Peg, Justin Sun Says Team Deployed More Capital

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The Tron-based stablecoin USDD has once again dropped below the $1 parity to a low of $0.969 on Monday, Dec. 12, 2022. Amid the drop in USDD’s value, Tron founder Justin Sun tweeted that his team was “deploying more capital,” and the stablecoin’s web portal usdd.io claims the project is overcollateralized by 200.8% at the time of writing.

Justin Sun Tells Crypto ‘Lads’ to Hold ‘Steady’ as USDD Team Deploys More Capital

Tron’s stablecoin USDD is the eighth largest dollar-pegged token and it’s ranked 57 in terms of the largest market capitalizations among thousands of crypto assets. On Monday, Tron’s stablecoin dropped down to $0.969 per token at around 2:51 a.m. (ET) and at around 8:00 a.m., USDD is exchanging hands for $0.979 per unit. While the Tron stablecoin dropped in fiat value, Tron founder Justin Sun reassured the public that USDD was an overcollateralized stablecoin by sharing the URL usdd.io.

The web portal dedicated to the Tron stablecoin claims USDD is overcollateralized by 200.8% at 8:00 a.m. (ET) on Dec. 12. “In case anyone asks about [USDD], it is 200% collateralized ratio on usdd.io,” Sun tweeted. “You can check all live data on blockchain 24*7,” the Tron founder added. Following that statement, Sun tweeted out another comment that was once said by Terra’s co-founder Do Kwon when UST was losing its peg. Sun wrote:

Deploying more capital – steady lads.

This is not the first time USDD has dropped below the $1 peg as the stablecoin dropped below $1 on Nov. 10, 2022, the day before FTX filed for bankruptcy protection on Nov. 11. On Nov. 10, USDD slipped to $0.976 per unit and it returned to the $0.99 range on Nov. 18, at around 1:00 p.m. (ET).

Tron's Stablecoin USDD Deviates From the $1 Peg, Justin Sun Says Team Deployed More Capital
Tron’s stablecoin USDD on Dec. 12, 2022.

Tron’s stablecoin USDD sunk even lower on June 19, 2022, when it dipped down to $0.928 per unit six months ago. By the first week of July, it had regained the $1 parity all the way up until Nov. 7, 2022, when it started to deviate again.

Interestingly, the Tron stablecoin tapped an all-time high just over a month ago, when it tapped $1.04 per unit on Nov. 9, 2022. At the time of writing, USDD has an overall market cap of around $711.31 million, and an estimated $79 million in 24-hour global trade volume.

The stablecoin’s supply has increased by 0.2% during the last 30 days. Since June 3, 2022, USDD’s market cap has grown by 6.6% from $667 million to today’s $711 million. Tron’s stablecoin is listed on a myriad of centralized and decentralized trading platforms with Huobi being the most active exchange on Dec. 12.

Tags in this story

$1 Parity, Altcoins, defend the peg, H.E. Justin Sun, justin sun, overcollateralization, Stablecoin, Stablecoins, Terra, Terra Do Kwon, Terra UST, Tron (TRX), Tron Blockchain, Tron DAO, TRON DAO Reserve, Tron Justin Sun, Tron Stablecoin, trx, usd coin (USDC), USDD, USDD Reserves, usdd.io

What do you think about the Tron-based stablecoin deviating away from the $1 parity this week? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons, Editorial photo credit: photo_gonzo / Shutterstock.com

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