Stablecoins went from being the most reliable assets in the crypto-verse to being volatile. Over the last couple of months, the scare around stablecoins, particularly algorithmic stablecoins surfaced. Despite this and the downfall of Terra and its stablecoin UST [now USTC], Justin Sun’s USDD managed to thrive. However, the asset was seen losing its $1 peg.
The crypto community was alerted after Tron’s USDD dropped below $1. The last couple of days have been quite volatile for Sun’s stablecoin. While USDD clung onto $0.97 for quite some time, it was seen depreciating. Earlier today, the asset dropped from a high of $0.9758 to a low of $0.9673.
As seen in the above chart, USDD recorded a significant fall. However, it was also trying to garner support at the $0.974 level. At press time, Tron’s stablecoin was trading for $0.9756 with a 0.18 percent surge.
This wasn’t the first time that USDD scared the community by losing its peg. In November, in the midst of the FTX collapse, the asset had slowly started to depeg. The lowest the asset has dropped to was $0.9255 back on June 19.
However, staying true to its identity of “over-collateralized stablecoin” USDD always managed to find its way back to $1.
Additionally, the liquidity pool on Curve’s decentralized finance protocol entailed 86 percent in USDD. The others like DAI accounted for 6.658 percent, USDC for 5.80 percent, and USDT at 5.59 percent.
Did this tick off a Tron [TRX] dumping spree?
It looks like all of Justin Sun’s assets were in distress mode. Right after USDD made noise for its de-pegging, TRX was seen plummeting. At press time, the asset was trading for $0.05233 with a 4.52 percent daily drop. The altcoin dropped from a high of $0.05475 all the way to a low of $0.05211.
Several speculated that this plummet could have been a reaction to USDD’s depegging.
However, it should be noted that the entire market was plummeting. Almost every asset was seen bleeding as part of the ongoing carnage.