This is Why Tron(TRX) Will Emerge As a Clear Winner Amid Crypto Crash

The post This is Why Tron(TRX) Will Emerge As a Clear Winner Amid Crypto Crash appeared first on Coinpedia - Fintech & Cryptocurreny News Media| Crypto Guide

Following the collapse of Terra (LUNA) and its algorithmic stablecoin Terra USD, a closely followed trader has named one cryptocurrency that he believes will emerge as the big victor (UST). According to a  trader named Light, Tron (TRX) and its algorithmic stablecoin Decentralized USD are ready to fill the void left by Terra’s collapse.

Because of Tron’s recent push into the algorithmic stable area and a 30% yield on USDD, TRX has shown significant relative strength, returning to its March highs in an environment where 99 percent of altcoins are down 50% or more. 

TRON Shifts Focus

Tron, a cryptocurrency that was created with the intention of serving as a decentralized storage and distribution network for social media and digital entertainment content, has recently shifted its focus to replicate the relationship that existed between LUNA and UST before their demise.

USDD will be decentralized and will be tied to the underlying asset, TRX. Users and arbitrageurs can send one USDD to the system and receive one US dollar worth of TRX when the USDD price is lower than one US dollar.

Users and arbitrageurs can contribute one US dollar worth of TRX to the decentralized system and receive one USDD when the USDD price is higher than one US dollar. Regardless of market volatility, the USDD protocol uses decentralized algorithms to maintain USDD steady at 1:1 against the US dollar.

i) It is in its fairly early stages, with only insiders in. There is room for latecomers and eventually even retail to enter before it carries the same risks as Luna. Timing is everything in musical chairs. USDD mcap is at only 2.5% of UST’s peak.

— light (@lightcrypto) May 23, 2022

Because the algorithmic stable coin has a market valuation of only $534 million, Light believes the current status of TRX and USDD gives chances to traders and investors. The crypto trader also quotes a tweet from Tron creator Justin Sun, who claims that the USDD has a $10 billion backstop at the Tron DAO Reserve.

Traders have begun transferring their TRX to the system in order to coin USDD, according to Light. TRX has a history of outperforming other crypto assets during bear markets, according to the trader.

“Tron has a history of pumping during periods of poor market conditions, where a few names soak up the lion’s share of speculative flows. The risk/reward of betting on a resurgent Justin Sun, who has seen opportunity in the vacuum left by Do Kwon, is set favorably.”