- Tron price has defied gravity in the past few days.
- The market value of the USDD Coin has risen to $230M.
The Tron price has outperformed other altcoins recently as investors cheer the performance of its newly launched stablecoin. The TRX token is trading at $0.088, which is the highest it has been since December last year. It has risen by more than 72% from the lowest level this year.
Stablecoins are the new trend
Tron surprised investors in April when the developers announced that they would be launching an algorithmic stablecoin that is similar to Terra USD. In fact, the mechanics of the USDD stablecoin have been similar.
The reception of this stablecoin has been extremely positive. Data compiled by CoinGecko shows that the total market cap of the stablecoin has risen to more than $230 million within less than a week. This makes it the fastest-growing stablecoin in the world.
The launch of USDD was a good thing for Terra since it processes billions of dollars worth of stablecoins every day. As such, many people who use its platform will likely shift to its stablecoin.
However, USDD faces significant competition ahead. For one, there are already existing stablecoins in the industry like Tether, USD Coin, Binance USD, and Terra USD. And many more are being launched. For example, Near Protocol plans to launch one known as USN.
Read more on how to buy Tron.
And in a statement last week, IOST said that it will also launch its stablecoin. With the success of USDD, there is a likelihood that more blockchains will launch their own stablecoins.
The strong performance of TRX price has happened in a time when investors are getting afraid of the Federal Reserve. Last week, the Fed decided to hike interest rates by 0.50% in a bid to control the rising inflation. It also warned that more rate hikes were coming.
Tron price prediction
The four-hour chart shows that the TRX price has been in a strong bullish trend in the past few days. The coin managed to move above the important resistance level at $0.080, which was the highest level on March 31st. It remains above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved above the neutral level at 50.
Therefore, the coin will likely keep rising as demand for Tron and USDD rises. A drop below the support at $0.08 will invalidate the bullish view.
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