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How Tron [TRX] is managing to keep its boat afloat amid looming depegging fears

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Source: Pixabay

We’re entering the fifth day of the Ton’s DAO crisis. While Justin Sun and his team have been trying to peg back USDD to $1, TRX itself has dropped by double digits during the course of the week despite some bullishness recently.

Unfortunate!

The USDD de-pegged from the US dollar at the start of the week by around 0.3 cents. This caused a lot of panic among investors fearing a Terra-like collapse. In the bleak market conditions, it was enough to wreak havoc on the entire digital asset market. All major cryptocurrencies are down along with liquidations of Celsius and Three Arrows Capital.

In an attempt to keep the ship afloat, Justin Sun and the Tron DAO team opted for market intervention. They decided to pour liquidity out of reserve funds and buy freely available TRX on those exchanges. Between 15-16 June alone, around 5 billion TRX tokens were withdrawn from centralized exchanges and DeFi lending platforms. Today, the Tron DAO Reserve transferred another 100 million USDC tokens to exchanges and repeat the process.

 

In the latest tweet, Tron DAO Reserve confirmed that they received another 300 million USDC as reserve funds. This pumped up the USDD collateralization to above 300% ensuring the safety of the network.

Miles to go still

Despite the efforts of Justin Sun and his team, TRX and USDD are still struggling. The latest crypto crash has been a big blow, but TRX has started showing some signs of recovery. Yesterday the native coin pumped up by 27% before a brief sell-off. Currently trading at $0.059, TRX is down by about 25% this past week. The volume on the network has also suffered in the past 24 hours dipping by 50%. The RSI for TRX currently stands at 39.8 signaling a period of consolidation in the coming days.

Source: Trading View

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Kanav is a journalist at AMBCrypto. He has a Masters in Media and International Conflict and is interested in areas of digital society, crypto developments in the political sphere and the socio-cultural impact of a crypto-society.

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