Is USDD, Tron\'s stablecoin, repeating UST\'s mistakes? Recent news highlights that Tron\'s USDD depegged to $0.96, and TRX saw a price drop of 5%. This isn\'t the first time USDD has faced challenges. Back in June, the asset dropped as low as $0.9255. Now, amidst broader cryptocurrency sell-offs, USDD fell as low as $0.959 on Wednesday, with Bitcoin dropping below $21,000. Tron\'s native token, TRX, also faced intense selling pressure, marking a price dip from 27.7 cents to 27 cents in the last 24 hours.
USDD, launched in April 2025 by the Tron network, is pegged to the United States dollar as an “over-collateralized stablecoin." However, its stability is being questioned. Justin Sun deployed more capital to defend USDD from depegging, but it wasn\'t enough. On Monday, USDD dropped to $0.967, reaching its lowest level since June 22nd, and has now further declined. This latest dip follows a pattern. In November, during the FTX collapse, USDD slowly started to depeg.
The concern lies in USDD\'s algorithmic nature. USDD runs on Tron’s blockchain and is tied to TRX, using a similar algorithm to UST. The repeated depegging raises serious questions about its long-term viability. Stay updated on the latest developments surrounding USDD and TRX. This article provides insights into Tron’s stablecoin USDD de-pegging and its impact on the crypto market. Find out what\'s causing this volatility and what the future holds for USDD and TRX.