Tron’s coin surges 7% on the news of the algorithmic stablecoin that aims to compete with Terra so let’s read more today in our latest Tron news today.
Following the news that Tron plans to roll out an algorithmic stablecoin, Tron’s coin surges by more than 7% and the crypto underpinned the network as it enjoyed a boost over the past day. According to the data from CoinMarketCap, Tron’s coins urges 7% in the past day and the jump led the coin to $0.07.Tron was launched in 2017 at the peak of the crypto bubble. It sought to resolve most issues facing blockchain technology including high transaction fees and slow speeds. It can host various dapps and defi projects with the network not reaching the same prominence s other smart contract platforms like Solana, Avalanche, and others.
When checking out the last time TRX hit a new high, the lack of traction became much clearer. It was all the way back to 2018 when the token hit a new high of $0.30. since then, it dropped, recovered, and dived again but never actually reached the same levels. Today’s price surge came on the heels of the new announcement. Tron’s creator Justin Sun announced the launch of the new algorithmic stablecoin for the network called USDD and with the announcement, Tron is entering the world of algorithmic stablecoin.
Unlike other fiat-backed stablecoins, these algorithmic ones are backed by crypto and rarely have a centralized entity overseeing the health. MakerADO’s DAI stablecoin is maybe the oldest example of the stablecoin and to mint DAI, users have to deposit crypto like ETH as collateral as Terra does. UST is also backed by cryptocurrencies and has a unique mint-and burn technique where $1 of LLUNA is destroyed to mint 1 UST. Tron’s USDD seems to mimic this mechanism aiming to destroy TRX and mint USDD.
As recently reported, Tron is a blockchain that boasts smart contracts and decentralized applications on a scalable network and gets into the algorithmic stablecoin game the creator Justin Sun announced that the Tron DAO, the restructure Tron Foundation allows users to take part in governance and decision making about the network and will be issuing a USD Stablecoin in May.
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