By George Ward
In a November 3 report, Messari tools, a crypto data aggregator, revealed good news for the stablecoin community. The report noted that Tron stablecoin (USDD) holders in Q3 increased by about 500%
Justin Sun, the founder of Tron, has been in the news lately. Last month, Sun was called up to be part of Huobi Global’s advisory board. In addition, the recent Messari report shows that Tron’s stablecoin is witnessing increased adoption.
USDD’s Progress
The report evaluated the growth trajectory of USDD from Q1 to Q3. In addition, it predicted growth for Q4 by analyzing some metrics. Messari’s report noted that users would continue to increase in Q4 2022.
Meanwhile, the report stated that the increased adoption would help improve the TRX value and USDD supply. Recall the USDD stablecoin lost its peg to the Dollar in Q2 2022.
However, recent data shows that the de-pegging did not affect adoption. As of Q2 2022, the number of USDD holders was 20,795. This figure increased to 120,698 in Q3 2022, which signifies a 480% jump.
After June’s de-pegging, the founder of Tron took several steps to prevent a similar occurrence. The process was called the “peg stability module.”
The community used assets like TUSD, USDT, USDC, and USDJ to collateralize the USDD adequately. Messari’s report for November revealed that the USDD is well backed by collateral assets such as USDC, USDT, and BTC.
According to the report, the DAO purchased TRX and BTC worth over $50 million in June and added them to USDD’s reserve. The report also stated that the community might sell TRX worth $725M to back the USDD stablecoin.
Meanwhile, Tron’s official Twitter account report confirmed Messari’s report. In October, more than 4.4 million users joined the Tron network. This shows that the network is progressively expanding.
Meanwhile, users can purchase the Tron Stablecoin from major exchanges such as Bitrue, Phemex, Bybit, MEXC, and XT.COM. The USDD is a DAO-issued stablecoin with different selling points.
One of them is its responsive monetary policy and inbuilt incentive mechanism. This allows the stablecoin to self-stabilize when it de-pegs.