Tron’s DeFi ecosystem is going strong
At a time when the entire crypto market has been struggling, Tron’s DeFi ecosystem is experiencing growth, according to DefiLlama data. This shows that Tron is now the third largest blockchain in terms of total value locked. Only Ethereum and the BSC (BNB) are ahead of it. Plus, with a total value locked of $5.8 billion, Tron is poised to catch up with Binance Chain’s TVL of $6.9 billion.
Tron is the only blockchain amongst the Top 20 recording gains, with a monthly gain of 41.33%. It has also risen by 33.23% over the last seven days. By comparison, the DeFi sector as a whole has lost about $90 billion in liquidity since last month, with the most prominent blockchains’ total value locked down by 30% to 70% following the Terra and LUNA crash. Indeed, Tron currently outperforms the most prominent Layer 1 networks, such as Avalanche and Solana, with its current TVL.
Tron’s stablecoin is the USDD. According to recent tweets, the total supply of USDD surpassed $600 million within the first month of launching. It is an algorithmic stablecoin on TRC20. The success of USDD has partly contributed to the rise in Tron’s TVL. And on 28th May, Justin Sun, the founder of Tron, has been tweeting that a big announcement for USDD is coming next week.
Before the Terra crisis, UST’s success prompted new entrants to explore stablecoins on the crypto market. TRON released the USDD stablecoin on 5th May and has since attracted industry attention. The stablecoin is meant to reward arbitrageurs to keep its price closely pegged to that of the U.S. dollar by trading between TRX, TRON’s token and USDD, sharing similarities with Terra’s UST.
USDD is currently ranked 73rd in terms of market capitalization, according to CoinMarketCap data, with a market cap of $603 million.