Altcoin
Assessing Tron CEO Justin Sun’s take on SVB saga and USDC depegging
- Justin Sun revealed his thoughts on the USDC depeg and was worried about its impact.
- TRX bounced courtesy of accumulation during its brief dip into oversold territory.
Tron founder and CEO Justin Sun is among the blockchain industry leading figures that have weighed in on SVB saga and USDC’s depeg.
The latter was not as bad as the UST depeg that occurred last year but it highlights vulnerabilities that may bring about huge losses.
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Sun revealed that he was concerned about USDC’s depegging. The reason for this concern is that Circle, the company behind USDC happens to be one of Tron’s biggest partners.
He also revealed that Tron is currently keeping a close eye on USDC on account of the robust exposure that it has to the stablecoin.
Concerned to see @Circle's #USDC depegging, but as a partner of Circle, we're closely monitoring the situation. Our team at #TRON stands ready to offer assistance if needed.
— H.E. Justin Sun 孙宇晨 (@justinsuntron) March 12, 2023
Assessing the level of Tron’s exposure to USDC woes
The CEO also disclosed the total stablecoin transfer volume on the TRON network. According to the update, USDT had the highest transfer volume at 9.8 billion, followed by USDC at 2.1 billion. TUSD was ranked third at 1.1 billion.
Total stablecoin transfer volume on #TRON in 3/11/2023. #USDT 9.8B/ #USDC 2.1B/ #TUSD 1.1B total 13.5B. pic.twitter.com/hiTR5gHDRj
— H.E. Justin Sun 孙宇晨 (@justinsuntron) March 12, 2023
The level of USDC transfer volume is significant enough to cause a sizable impact in case of a severe depeg such as that of UST.
Fortunately, Circle and all the involved stakeholders have been aggressively working towards restoring USDC’s peg and so far it appears to be working.
The USDC peg recovered to $0.994 on Gemini at the time of writing. However, it was lower on other exchanges such as Binance and Kraken where it traded at $0.95.
This may still be concerning but it represents a bit of recovery considering that USDC fell as low as $0.87 during yesterday’s trading session. The fact that the price has not recovered means there is still some degree of risk with USDC.
How is TRX fairing after last week’s harsh events?
TRX’s volume peaked on 10 March and has since then dropped off significantly. A potential sign that selling pressure has been dissipating.
Source: Santiment
The lower sell pressure means TRX bulls have a chance at some recovery. That seems to be the case considering the demand recovery observed in the last 24 hours.
This was evident by the uptick in Tron’s Binance funding rate. The social dominance metric demonstrated a similar outcome with a large spike to the highest level in the last 7 days.
Source: Santiment
Furthermore, some accumulation of TRX took place after bottoming out at $0.055 on Friday. Its $0.059 press time price represented an almost 8% upside.
Source: TradingView
How many are 1,10,100 TRXs worth today?
The cryptocurrency has swiftly managed to bounce back from oversold territory. Nevertheless, investors should still be cautious because the market is not out of the woods yet.
