As a seasoned crypto investor with a knack for recognizing potential in underrated projects, I find myself intrigued by the recent moves of Tron’s USDD stablecoin. The decision to offload Bitcoins from their reserves and reinvest in HTX is an interesting strategy that reflects the dynamic nature of this industry.
The Tron DAO Reserve recently made a significant choice to eliminate Bitcoins from its reserves supporting the USDD stablecoin, instead redirecting the funds into HTX coins. This action has sparked intrigue in the crypto industry, with some volatility observed in Tron’s dollar-pegged stablecoin, as its value dipped by 0.17% to approximately $0.9989 at the time of reporting.
Tron’s USDD Stablecoin Bitcoin Reserves Dropping
According to Arkham Intelligence’s data, it’s evident that the Tron DAO Reserve has transferred approximately 4,000 Bitcoins to HTX over the past three days. Over the course of the last year, they have systematically decreased their Bitcoin holdings by about 42%, but they currently maintain a reserve of around 8,000 Bitcoins.
At present, the USDD supply totals approximately 745 million units, and its overall value is a substantial $1.723 billion. Interestingly, it’s been found that almost all of this collateral (approximately 99%) is backed by Tron’s native cryptocurrency TRX. The total backing for USDD stands at around 10.93 million TRX units.
As a crypto investor, I’ve been following Justin Sun’s insights closely, and his recent explanation for the decentralized USDD stablecoin really caught my attention. He likened it to MakerDAO’s DAI in its functioning. The unique aspect of USDD is its collateralization model. Holders of the collateral can withdraw their assets whenever the value of the collateral surpasses a particular threshold, typically between 120%-150%. However, if the collateral drops below 110%, it automatically adds more collateral to prevent liquidation. In his words, “This is fundamental DeFi.”
Currently, the collateralization rate of USDD stands at over 300%, demonstrating relatively low efficiency with capital. As shared by Sun, the TRON Decentralized Autonomous Organization (DAO) intends to enhance the competitiveness of the USDD stablecoin by making improvements. Moreover, Sun underscored that Tron serves as a robust platform for stablecoins.
Tron’s TRX Gaining Strength
As a crypto investor, I’ve noticed an intense wave of memecoin mania on the Tron blockchain, causing a significant spike in network activity and propelling the TRX price by 19% over the past week. In this competitive market, TRX has been battling it out with Cardano‘s ADA for the tenth position, currently trading at approximately $0.1548 with a market capitalization of around $13.45 billion. With the ongoing rally, I can see the TRX price aiming for its record high level of $0.20.
The excitement surrounding meme coins on Tron’s SunPump platform has significantly boosted the daily income of the Tron network. Justin Sun, in an optimistic outlook, aims to reach a staggering $4 billion in revenue for the coming year. As he remains confident about his memecoin approach, Sun proposes using $1 billion of this projected revenue for burning purposes, while designating $2 billion for rewards to stakers and covering transaction costs.
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2024-08-23 07:22