Following the $60 billion Terra ecosystem’s catastrophic downfall in early May, Tron has risen to become the third-largest blockchain in the decentralized finance industry (behind only Ethereum and BNB Chain).
Justin Sun, the founder of Tron, recently informed Bloomberg that the USDD (USDD) stablecoin would be modified to avoid a Terra-style collapse. Overcollaterization of the algorithmic stablecoin, according to Sun, would improve investor trust. It currently has a total of $1.37 billion in digital assets in its reserve, which will be kept with a collateral ratio of at least 130 percent.
The Tron founder admitted that the Terra collapse had fastened the planned upgrade. According to data given by CoinGecko, the total supply of the stablecoin is presently at $667 million.
Is TRON’s Rebirth a Catalyst?
After the public release of USDD, the project’s new algorithmic stablecoin, the Tron blockchain saw a significant increase. Tron has risen by a whopping 41.68 percent this month, with a 13.30 percent gain in the last week.
According to DefiLlama’s data, its total value locked (TVL) has surpassed $6 billion and it has now surpassed Avalanche and Solana in popularity. The price of Tron has risen in response to the rebirth of the Tron ecosystem. The action, which appeared to be a relic of the past only a few months ago, is now on the verge of re-entering the top ten.
Before hitting the key $0.1 mark, sellers quickly applied pressure and pulled the price back, meaning Tron has been rejected at this level since May 8, 2022. TRX has increased by more than 3 percent in the last 24 hours.
TRX’s next major resistance level is $0.09, while immediate support is $0.074, with the current price hovering around $0.080 TRON is currently 64 percent away from reclaiming its previous all-time high of $0.231673, which is set back in 2018.