Tron is DeFi’s Third-Largest Blockchain with Total Value Locked at $5.90bln
The blockchain that Justin Sun and his team built in 2018 under the name Tron is currently the third-largest one used by DeFi in terms of total wealth locked up (TVL). As per DefiLlama, the total value locked (TVL) across all nine of Tron’s various applications has reached $5.9 billion at the present time. This represents a growth of 44 percent over the course of the previous month.
The only chains that are currently ahead of it are BNB Chain and Ethereum, the chain that now leads the industry. The total value of assets hosted on Ethereum now exceeds $93 billion, while the TVL of Binance Smart Chain is at $10.8 billion. Tron is also the only blockchain that has seen consistent growth across all of the main networks, making it a unique asset.
Over the course of the last month, Ethereum, Polygon, Solana, Avalanche, BNB Chain, and Fantom have all had double-digit price declines. Tron’s bullish activity has been mostly fueled by the debut of its new algorithmic stablecoin, which promises double-digit returns. This plan is somewhat unlike to the scheme that the Terra stablecoin just implemented.
In contrast to Tether’s USDT and Circle’s USDC, USDD is not backed by anything and is instead managed by algorithms for smart contracts. Tether and Circle are both competing digital currencies. An arbitrage transaction between USDD and TRX, which is the native token of the Tron network, is the basis for the algorithm that governs the dollar-peg of the stablecoin.
Investors always have the option to trade 1 USD for 1 TRX worth $1, which will result in 1 USD being removed from circulation. If the price of USDD drops below a dollar peg, investors have the option of purchasing the discounted USDD and exchanging it for TRX. They may then pocket the difference between the two prices by selling TRX tokens on an open market. In addition, like Terra, USDD guarantees investors returns of more than 20 percent annually across a number of different Tron-based businesses. On JustLend, a platform that is unique to the Tron blockchain, the interest rate for USD is now set at 23 percent. In other news, customers who stake their USDD-TRX liquidity tokens on the SUN stablecoin platform have the potential to earn returns of up to 64 percent. Because of the high rates, several of these platforms have seen a significant increase in the amount of activity that is being conducted on them.
According to DefiLlama, JustLend’s total value of loans (TVL) grew dramatically, going from $1.79 billion to $2.86 billion in less than a month. Over the last month, the TVL of other Tron protocols, such as JustStables, SunSwap, and Sun.io, has increased as well. During the same time period, the TVL on JustStables climbed by 15 percent, the TVL on SUNSwap increased by 6.18 percent, and the TVL on Sun.io increased by 140 percent.
Even though it is a fraction of the size of Terra’s UST, USDD’s market value is likewise expanding at a rapid rate. At this time, there are a total of 601 million USDD tokens in circulation, and the market valuation of the asset is only a little more than $602 million. According to the statistics provided by CoinMarketCap, this value represents an increase from the $90 million that was recorded on the day that it was launched on May 5, 2022.