Tron has come to be ranked as the third-largest network in total value locked (TVL) in decentralised finance (DeFi) protocols this week. Interestingly, the DeFi protocol Justlend, which is comparable to Anchor Protocol in that it offers over 20% APY for USDD deposits, owns 48.19% of the TVL. With the rise of Tron’s TVL, some have questioned the network’s stablecoin USDD, pointing out similarities between USDD and Terra’s UST.
Tron’s £4.70 billion TVL in DeFi at the time of writing placed it at number 3 on May 30, just behind Binance Smart Chain (BSC) and in front of Avalanche (AVAX).
Despite the shockwaves from the Terra LUNA and UST crash, Tron’s TVL was £3.14 billion on May 12, 2022, and the blockchain was rated fifth in terms of TVL size by chains. Tron’s TVL was 16.16% lower on the day than a week earlier, but after the Terra disaster subsided, Tron climbed to third place in terms of TVL in DeFi.
Tron’s DeFi TVL has grown 45.22% this month, and it has increased 13.73% in the last seven days. Justlend, a DeFi protocol, dominates Tron’s TVL, with 48.19% of aggregate held in DeFi on the Justlend application. Justlend boasts a TVL of £2.26 billion, which has risen significantly since May 21.
Since May 21, £0.85 billion has been contributed to Justlend, resulting in a 58% rise in the protocol’s TVL. USDD deposits on Justlend, like Anchor, pay 23.55% APY at press time.
Juststables and Sunswap are two other major DeFi applications on Tron in terms of TVL balances, having a TVL balance of £1.11 billion and just under a billion, respectively. USDD has also come out to be the ninth-largest stablecoin among fiat-pegged tokens.
Today, the stablecoin from Tron has a market valuation of £477 million, hitting £142 million in 24-hour global transaction volume. USDT and USDC are the top two trading pairs for the USDD, according to Cryptocompare statistics. The APY on Justlend and Tron’s algorithmic stablecoin USDD are remarkably similar to the products originally introduced by Do Kwon, Terraform Labs (TFL), and Anchor.
Despite naysayers, Tron has risen to the top of the decentralised fiance sector. Furthermore, Tron’s native coin, tron (TRX), has climbed to 14th place in terms of market capitalisation.
While bitcoin (BTC), ethereum (ETH), and many other cryptocurrencies have been losing money for nine straight weeks, Tron has managed to avoid the worst of the market turmoil. TRX has gained 14.7% in the last two weeks and 30.5% in the last month against the US dollar.