While most of the coins have been sold off, and the cryptocurrency market is showing a 7% correction, the TRX of the Tron project is steadily growing in price. It’s all about the launch of a new USDD stablecoin and Justin Sun’s desire to catch up with the capitalization of the Terra blockchain.

On May 5, the launch of the algorithmic USDD stablecoin pegged to the US dollar in a ratio of 1:1 took place. The binding of USDD to the internal TRX coin is responsible for matching the exchange rate. If the price of USDD decreases, arbitrageurs can get TRX in the amount of $1 for a stablecoin.

Accordingly, with the growth of USDD, arbitrageurs spend TRX in the amount of $1 and receive USDD.

The advantage of algorithmic stablecoins is the independence of the issue from the will of the developer. Unlike centralized stablecoins (for example, Tether), it is impossible to print more coins to cover any expenses. The disadvantage is the relative stability of the entire system, since the panic sale of cryptocurrencies can break the 1:1 tie with fiat and lead to the depreciation of the stablecoin.

To minimize the risks, Terra additionally connects UST with its own reserve in Bitcoin, which now totals 80,394 BTC or $2.9 billion. This step allowed UST to take the third place in capitalization among stable coins with $18.7 billion, and in the DeFi Terra sector with a market share of 14.3% is second only to Ethereum.

USDD is a tracing paper of the UST stablecoin, which is why traders expect to repeat the success of Terra and actively buy TRX. However, Justin Sun has not yet shared his plans to form a reserve for a stablecoin, and a number of scandals involving him frightens potential investors.

Now Tron occupies the 19th line of the rating with $8 billion capitalization. The network has over 90 million addresses and, due to low fees, came out on top in terms of TRC-20 USDT turnover with an indicator of $41.7 billion. If Justin Sun manages to convince the public of the reliability of the new product, TRX will continue to grow.