Tron’s Stablecoin USDD Diverges From $1 Peg, Justin Sun Says Team Has Deployed More Capital – Altcoins Bitcoin News

The Tron-based stablecoin USDD has once again fallen below $1 parity to a low of $0.969 on Monday, December 12, 2022. Amid the drop in USDD’s value, Tron founder Justin Sun tweeted that his team “deployed more capital” and the stablecoin’s online portal usdd .io claims that the project is overmortgaged by 200.8% at the time of writing.

Justin Sun Tells Crypto ‘Lads’ to Hold ‘Steady’ as USDD Team Deploys More Capital

Tron’s stablecoin USDD is the eighth largest dollar-pegged token and it is ranked 57th in terms of largest market capitalization among thousands of cryptoassets. On Monday, Tron’s stablecoin fell to $0.969 per token around 2:51 a.m. (ET) and around 8:00 a.m. USDD changed hands for $0.979 per unit. While the Tron stablecoin fell in fiat value, Tron founder Justin Sun assured the public that USDD was an overcollateralized stablecoin by sharing the URL usdd.io.

Deploy more capital – steady guys

— Do Kwon 🌕 (@stablekwon) 9 May 2022

The online portal dedicated to the Tron stablecoin claims USDD is overpledged by 200.8% at 8 a.m. (ET) on December 12. “In case anyone asks [USDD]there is 200% security on usdd.io,” Sun tweeted. “You can check all live data on the blockchain 24*7,” the Tron founder added. Following that statement, Sun tweeted out another comment that was once said by Terra’s co-founder Do Kwon when UST lost the pin. Sun wrote:

Deploy more capital – steady guys.

This is not the first time USDD has fallen below the $1 peg as the stablecoin fell below $1 on November 10, 2022, the day before FTX filed for bankruptcy protection on November 11. On November 10, USDD fell to $0.976 per unit and it returned to the $0.99 range on November 18, around 1 p.m. (ET).

Tron’s stablecoin USDD sank even lower on June 19, 2022, having fallen to $0.928 per unit six months ago. By the first week of July, it had regained $1 parity until November 7, 2022, when it began to diverge again.

Interestingly, the Tron stablecoin lost an all-time high a little over a month ago, when it drained $1.04 per unit on November 9, 2022. At the time of writing, USDD has a total market cap of around $711.31 million, and an estimated 79 million dollars in 24-hour global trading volume.

Stablecoin’s supply has increased by 0.2% over the past 30 days. Since June 3, 2022, USDD’s market capitalization has grown by 6.6% from $667 million to today’s $711 million. Tron’s stablecoin is listed on a myriad of centralized and decentralized trading platforms with Huobi being the most active exchange on December 12.

What do you think about the Tron-based stablecoin deviating from $1 parity this week? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is the news editor at Bitcoin.com News and a financial technology journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.