About two weeks ago, the new algorithmic stablecoin to run on the Tron Blockchain, announced by TRON founder Justin Sun, has had the expected impact on the Tron (TRX) price. TRX price is taking action now as the altcoin project celebrates the 90 million wallets it has reached.
Tron (TRX) made 10% after celebrating 90 million accounts
As the Tron network prepares to launch its own algorithmic stablecoin, the number of accounts on Tron reaches 90 million, attracting more users to the network. TRX price is already reacting with a strong 10% price increase. The announcement of the algorithmic stablecoin was made recently by Justin Sun, who fueled a short-term rally in the market. The release of a stable solution on Tron has been a long-awaited event, as networks like Ethereum, Solana, and others offer their own algorithmic options. As we have quoted as Kriptokoin.com, the first announcement made by Justin Sun had increased the TRX price by double digits.
Since the new solution in Tron will use a more decentralized mechanism in essence It will be different from UST or USDC. Algorithmic stablecoins are backed by cryptocurrencies, unlike coins like Tether, which uses fiat assets, currencies, and other tools to stabilize the price of the money.
Altcoin TRX’s price performance
According to the daily chart of TRX price, Tron is 0.7% since March’s massive pump wave which resulted in a nearly 30% rise amid the announcement of a network-backed stablecoin. It is trading between 0.6 and 0.6 dollars.
Before the final launch of “USDD” stablecoin, the market is staked TRX to use future stablecoin as the price of TRX increased 10% today and on April 21st . Besides using TRX for transactions, USDD will most likely emulate Terra’s UST mechanism. To issue more stablecoins, the underlying token must be burned.
Continuous burning events often lead to an increase in the valuation of an asset as the market supply is constantly decreasing. But while the price of TRX should rise as more cryptocurrencies are burned, this may not be true as Ethereum doesn’t seem to benefit from the sustained burns.
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