USDD shows robust growth despite challenges and maintains over 130,000 users.

USDD shows robust growth despite challenges and maintains over 130,000 users.

USDD on Tron: A look under the hood

USDD, a fast-moving stablecoin originally from Tron, has performed well despite a difficult start. In the last quarter, USDD managed to retain over 130,000 users, which represents a decrease from previous quarters. But what is behind the USDD stablecoin and how has it developed since the turbulent events of 2022?

In the second quarter of 2023, USDD has shown improved stability and lower volatility, which has helped maintain its peg to the US dollar. This was confirmed by analytics firm Messari in a recent report. The report also revealed that USDD had over 130,000 token holders during the quarter.

Messari’s analysis also shows that DeFi protocols, particularly lending protocols, account for a significant portion of USDD utility in the Tron ecosystem. SunCurve and SunSwap, two of the top DEXes on Tron, control about 10% of USDD in circulation. Liquidity deposited in loan protocols amounted to USDD 220 million in the second quarter, while USDD 5 million was issued as loans.

USDD has shown healthy on-chain performance over the past six months. Volume on the Ethereum network peaked in February at up to 159.37 million USDD, while volume on the BNB chain peaked at just under 50 million USDD. Network growth has ensured healthy activity over the same period.

This rapid growth of USDD is closely linked to the robust growth of the Tron network. USDD is expected to continue growing along this path as the Tron network continues its expansion. However, the question remains whether Tron will be able to prevent problems like the UST crash in 2022.

Overall, the USDD stablecoin is showing positive development and benefits from the stability of the Tron network. It remains to be seen how the market will develop and whether Tron can keep its promises.

Sources:
– Messari
– Santiment