Tron DAO crisis continues today for the fifth day. As Justin Sun and his team work to bring USDD back to £0.81, TRX has declined by double digits this week, despite some recent bullishness.
The USDD depreciated against the US dollar by roughly 0.3 cents at the start of the week. This sparked widespread concern among investors, who feared a Terra-style collapse. It was enough to wreck havoc on the entire crypto space in these gloomy market conditions. All top coins are down, coupled with Celsius and Three Arrows Capital liquidations.
Justin Sun and the Tron DAO team chose market intervention as a means of keeping things afloat.
They opted for liquidity from reserve funds to buy freely available TRX on those exchanges. Around 5 billion TRX was withdrawn from central exchanges and DeFi loan platforms between the 15th and 16th of June alone. The DAO Reserve sent another 100 million USDC tokens to exchanges today.
Tron DAO Reserve announced in a recent tweet that they have received another 300 million USDC in reserve funds. This increased USDD collateralisation to almost 300%, safeguarding the network’s security.
TRX and USDD are still struggling despite Justin Sun and his team going to exhausting lengths. The recent crypto meltdown was a huge blow, but TRX has begun to show signs of recovery. The native cryptocurrency gained 27% yesterday before a brief sell-off. TRX is currently changing hands at £0.048, down around 25% in the last week. The network’s volume has also suffered in the last 24 hours, dropping by 50%. TRX’s RSI is currently at 39.8, indicating a period of consolidation in the days ahead.
Tron DeFi total value locked (TVL) was £3.27 billion at the time of writing, down 6.01% in 24 hours. On June 8, before the USDD-driven decrease, the TVL was £5.14 billion.
The decreased TVL hints at a possible TRX pullback.