Why is TRON (TRX) crypto riding high?

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Why is TRON (TRX) crypto riding high?

Why is TRON (TRX) crypto riding high?
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Highlights 

  • TRON (TRX) is a blockchain-based operating system.
  • The TRON network claims to handle 2,000 transactions per second (TPS).
  • On Thursday, TRON revealed plans to launch its algorithmic stablecoin USDD. It is expected to enter circulation on May 5, 2022. 

The TRON (TRX) token gained traction on Thursday after it revealed plans to launch an algorithmic stablecoin USDD, expected to enter circulation on May 5, 2022.

On the back of this positive news, Tron’s accounts surpassed 88 million on Thursday. The USDD (Decentralized USD) would be available on Ethereum and BNB Chain through the BTTC cross-chain protocol. TRON aims to make decentralized finance accessible to people through its USDD stablecoin, which does not depend on any centralized entities. 

As per TRON’s blog post, stablecoins have ushered in a new era, Stablecoin 3.0, from the previous Omni-based and TRON-based stablecoins.  

TRON said USDD would have complete decentralization on-chain, unlike earlier stablecoins dependent on centralized institutions for redemption, management, and storage. 

The USDD stablecoin will be pegged to TRX, the underlying asset to be issued in a decentralized manner. It is designed to keep the USDD value stable at a 1:1 ratio against the US dollar.

The USDD network will also provide custody service for assets raised from blockchain industry initiators, worth around US$10 billion, and use them as an early-stage reserve, the blog said.  

TRON has also created the first decentralized reserve, TRON DAO Reserve. DAO will manage the USDD permissions and ensure price stability and decentralization as a custodian.     

Also Read: Why is Decentralized Social (DESO) crypto gaining attention?

The TRON DAO Reserve will keep the basic annual interest rate at 30% and facilitate centralized and decentralized organizations that accept USDD to implement a consistent rate policy.

According to the company, USDD will safeguard holders’ interests by eliminating arbitrary impositions by the central authorities, which could freeze or confiscate users’ funds at will. 

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The company opines that financial services will become a necessity like water and air in the future, and hence, people should have the freedom over finance and wealth.

The TRON (TRX) token traded at US$0.07311, up 16.60%, at 10:38 am ET on Thursday. Its trading volume rose 90.02% to US$1.99 billion in the last 24 hours.

Also Read: Why is Monero (XMR) crypto gaining attention? All you need to know

Why is TRON (TRX) crypto riding high?Data Source: coinmarketcap.com

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What Is TRON (TRX)?

TRON is a blockchain-based operating system. The TRON network claims to handle 2,000 transactions per second (TPS) compared to Bitcoin’s about six TPS and Ethereum’s 25 TPS. 

Known for its support for decentralized content sharing, in 2018, TRON acquired the popular file-sharing platform BitTorrent for around US$140 million. 

TRX’s market capitalization is currently US$7.43 billion, and the total supply is 101.6 billion.

Also Read: Why NEAR Protocol (NEAR) token soared over 55% in a month?

Bottom line:

Decentralization is the core idea of blockchain technology. It is likely to enter various domains in future. The crypto market is prone to various threats, including scams and hanks; hence, investors should exercise caution before investing in digital assets. 

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