Can Tron (TRX) maintain its value long-term after efforts for stablecoin peg?

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Tron TRX/USD has a huge ecosystem of decentralized applications (dApps), many of which have gathered a high level of reputation within the crypto sphere.

From decentralized finance (DeFi) to non-fungible tokens (NFTs), it is clear that this is a large and vast ecosystem that has a lot to offer.

The Battle for keeping USDD pegged to the U.S. Dollar

Throughout this ecosystem, we have Decentralized USD. The TRON Decentralized Autonomous Organization (DAO) is the custodian of USDD, and its main goal is to maintain the price stability of this stablecoin.

Tron’s USDD stablecoin started losing its peg as the price of the TRX cryptocurrency slumped on June 13, 2022.

The cryptocurrency was trading at $0.98, which was 2% under its intended price.

Justin Sun, who is the head of the Tron Foundation, made important statements on June 13, 2022, where he reported that the Tron DAO injected 700 million in USDC to keep the USDD pegged to the dollar.

On June 14, 2022, the TRON DAO Reserve, which manages the USDD stablecoin, announced that they received another 500 million USDC to defend the USD peg.

Then on June 15, 2022, the TRON DAO Reserve said that it is withdrawing 2.5 billion TRX out of Binance as a means of safeguarding the overall blockchain industry and crypto market.

On June 16, we saw another announcement that TRON DAO Reserve will withdraw 3 billion TRX out of CeFi exchanges and DeFi Lending platforms.

TRX was also added as an offering on DMM Bitcoin, one of the biggest cryptocurrency exchanges in Japan.

They also published their weekly report where they mentioned solid performance and the successful completion of an integration mechanism for parachain in cross-chain communication.

Should you buy Tron (TRX)?

On June 17, 2022, Tron (TRX) had a value of $0.06105898.

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The all-time high of Tron (TRX) was on June 5, 2018, at $0.231673.

When we go over the performance throughout the previous month, Tron (TRX) had its lowest point of value on May 1 at $0.06255. Its highest point of value was on May 8 at $0.08931.

Here we can see that the cryptocurrency increased in value by $0.02676 or by 42%.

With this in mind, we can expect TRX to climb to $0.1 by the end of June. 2022, making it a solid token to buy. 

The post Can Tron (TRX) maintain its value long-term after efforts for stablecoin peg? appeared first on Invezz.

from Market Analysis – Invezz

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