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- 1 USDR, a real estate-backed stablecoin, lost around 50% of its peg following the liquid backing crisis.
- 2 When writing, Real USD (USDR) was trading at $0.5327 with an intraday decline of 45.16%.
USDR, a real-estate-backed stablecoin, faced a severe decline in the past few days as its value de-pegged from its $1.00 target.
According to available data, the unprecedented crash was followed by the depletion of the USDR treasury of its liquid assets. The end of liquid backing led to a sudden crash as the coin failed to maintain its peg of 1:1.
Market analysts and experts believe that the de-pegging of USDR will affect the broader crypto market, and some tokens might face a severe decline in the coming days.
De-pegging USDR will stir the market, and a significant sell-off might hit the market in the coming days. Following the treasury draining, the USDR trading price declined significantly, trading at around $0.51.
When writing, Real USD (USDR) was trading at $0.5327 with an intraday decline of 45.16%. Onchain data shows that TangibleDAO, the founding organization of USDR, has no DAI and that the only liquid assets are an insurance fund worth around $6.2 Million on a circulating supply of 45 Million USDR.
TangibleDAO published an action plan post-USDR failure: “Tangible isn’t going anywhere; we have a flywheel that works and plans to continue building within that. A critical part of our shared future success is maintaining the trust we’ve established with our users over the past year, which we hope to maintain through the plan below.”
USDR coin registered its all-time low of $0.5057 on October 12, when the de-pegging occurred. As per coinmarketcap data, the all-time high of stablecoin was $1.04, which is approximately 48.78% greater than its press time trading price.
The total supply of USDR is 45,548,175.050146 coins, and its fully diluted market capitalization is $24,310,427.47.
Will the Unprecedented Demise of USDR Affect the Crypto Market?
When writing, the global crypto market capitalization reflected a significant decline of 1.35% intraday. Bitcoin lost 1.49% of its trading value. Ethereum, Dogecoin, XRP, and Solana also reflected a similar decline.
The entire market capitalization of the stablecoin category declined by approximately 0.20%, and the trading volume of stablecoin shed 1.61% after the de-pegging of the USDR coin. The total volume in DeFi is currently $1.86 Billion, 7.35% of the total crypto market 24-hour volume.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
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.
