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Following the demise of FTX on December 12, 2022, the algorithmic decentralized stablecoin USDD lost its peg to the dollar. Investor confidence is declining, and market apprehension is steadily rising as a result of FTX's fall.
USDD/USDT trading graph at MEXC
The stablecoin USDD, created by Tron founder Justin Sun, plunged to $0.9693 earlier today, hitting its lowest level since June 2022. The decrease went above the DAO's 3% price fluctuation limit. This satisfies the prerequisite that price changes qualify as a de-peg. Following the FTX crisis, USDD deviated from its 1:1 exchange rate with the US Dollar last month. Other stablecoins like USDT and USDC also see a brief decline before quickly regaining their pegs.
While USDD saw a protracted fluctuation. This movement results from a rise in the stablecoin's dominance percentage in the USDD/2CRV liquidity pool. Unfortunately, USDD made up 86% of the pool's total $34.5 million in liquidity, up from 80% on November 10, 2022. Due to this significant imbalance, users are substituting other pool components for USDD. In actuality, it exceeds DAI, USDC, and USDT substantially.
The Quick Fix by Justin Sun for USDD
Justin Sun quickly decided to calm the markets and restore investor confidence after the slump. He announced his decision to exchange about $773,000 worth of USD on Twitter. Sun displayed the transaction data that revealed he exchanged $203,000 in USDC and more than $570,000 in USDT. Additionally, he tweeted “Deploying more capital – steady lads”, reiterating the words of Terra CEO Do Kwon just before Terra's downfall in May.
He also emphasized that the USDD's collateral ratio exceeds 200%. The stablecoin's future is currently causing concern in the cryptocurrency community. Investors are left wondering why it can't retrieve its peg and why its computational methodology is identical to the UST. Stablecoin: Will it be the next coin to crash? The USDD is now trading little below $0.98. With a fully diluted market value of $709,060,326 and a 24-hour trading volume of $77,620,641, it is also the eighth-largest stablecoin.
Final Thoughts
According to Tron's website, the network is currently valued $825 million. They are, nevertheless, perceived as a potential cautionary sign by the community. The current cryptocurrency market cannot experience another catastrophic crash. Hopefully nothing disastrous occurs that would ruin the fragile market.
Following the demise of FTX on December 12, 2022, the algorithmic decentralized stablecoin USDD lost its peg to the dollar. Investor confidence is declining, and market apprehension is steadily rising as a result of FTX's fall.
USDD/USDT trading graph at MEXC
The stablecoin USDD, created by Tron founder Justin Sun, plunged to $0.9693 earlier today, hitting its lowest level since June 2022. The decrease went above the DAO's 3% price fluctuation limit. This satisfies the prerequisite that price changes qualify as a de-peg. Following the FTX crisis, USDD deviated from its 1:1 exchange rate with the US Dollar last month. Other stablecoins like USDT and USDC also see a brief decline before quickly regaining their pegs.
While USDD saw a protracted fluctuation. This movement results from a rise in the stablecoin's dominance percentage in the USDD/2CRV liquidity pool. Unfortunately, USDD made up 86% of the pool's total $34.5 million in liquidity, up from 80% on November 10, 2022. Due to this significant imbalance, users are substituting other pool components for USDD. In actuality, it exceeds DAI, USDC, and USDT substantially.
The Quick Fix by Justin Sun for USDD
Justin Sun quickly decided to calm the markets and restore investor confidence after the slump. He announced his decision to exchange about $773,000 worth of USD on Twitter. Sun displayed the transaction data that revealed he exchanged $203,000 in USDC and more than $570,000 in USDT. Additionally, he tweeted “Deploying more capital – steady lads”, reiterating the words of Terra CEO Do Kwon just before Terra's downfall in May.
He also emphasized that the USDD's collateral ratio exceeds 200%. The stablecoin's future is currently causing concern in the cryptocurrency community. Investors are left wondering why it can't retrieve its peg and why its computational methodology is identical to the UST. Stablecoin: Will it be the next coin to crash? The USDD is now trading little below $0.98. With a fully diluted market value of $709,060,326 and a 24-hour trading volume of $77,620,641, it is also the eighth-largest stablecoin.
Final Thoughts
According to Tron's website, the network is currently valued $825 million. They are, nevertheless, perceived as a potential cautionary sign by the community. The current cryptocurrency market cannot experience another catastrophic crash. Hopefully nothing disastrous occurs that would ruin the fragile market.
