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TRON founder Justin Sun said that TRON network will soon step in inside the stablecoin space to secure its finances
On Thursday, the founder of TRON network Justin Sun announced that Tron blockchain will launch a new decentralized stablecoin with the ability of dollar-pegged algorithm. The stablecoin based on the TRON network will be called USDD. The TRON Decentralized Autonomous Organization or DAO has intentions to raise about $10 billion in upcoming months of this year to fund their crypto reserve for securing stability in USDD in time of financial crisis.
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USDD being a decentralized algorithmic stablecoin will be under the influence of supplies of native cryptocurrency of the TRON network, TRX. The price of TRX token surged more than 15% after following the news directly and reached its three weeks highest point until trading at about $0.07183, while at the time of writing, it was trading at $0.6765.
There are roughly about 41.8 billion USDT stablecoins, out of its total circulation of about 351 billion, is circulating on the TRON blockchain. This amounts to about 2 billion coins more than Ethereum. Needless to mention that USDT, of Tether network, is the largest stablecoin in the overall crypto market in terms of total market capitalization and volume for now.
TRON is making a movement in order to collateralize an algorithmic stablecoin which will reflect the efforts of Do Kwon and Terra network as their ongoing progress to back their UST stablecoin with about $10 billion worth of Bitcoin.
A stablecoin is primarily a form of cryptocurrency that is backed by any fiat currency or asset which is comparatively more stable and provides stability to the cryptocurrency. Most stablecoins available in the crypto market are backed by US dollars. Such examples of stablecoins are USDT which is Tether’s stablecoin, USDC stablecoin of circle, DAI of MakerDAO and a lot more. In comparison to regular cryptocurrencies, stablecoins make more sense to use as actual currency as its value remains stable most of the time while keeping the advantages of being a digital currency which gives it faster transaction speed and decentralization like features.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
