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TRON defies Q2 crypto selloff

It’s another day of declines for the crypto world this Tuesday:

  • Bitcoin dropped 6% today as it struggles to escape the clutches of the $30,000 mark, having lost more than half (57%) of its value since its all-time high set in November 2021.
     
  • Ethereum, the second largest cryptocurrency by market cap, is down by 5.5% at the time of writing as it continues to languish below $2000 while remaining near a 12-month low.
     
  • The Bloomberg Galaxy Crypto Index, which measures the performance of the largest digital assets that are traded in US dollars, is currently at its lowest since January 2021.
     

Yet amid this sea of red in recent months, there are digital assets that appear to be swimming against the tide.

 

Enter, TRON

TRON is the blockchain-based, decentralized platform, featuring its own native token: Tronix a.k.a. TRX – the 13th largest cryptocurrency by market cap, according to CoinGecko.

Founded in 2017, TRON aims to be a cost-effective platform for sharing content, with such ambitions buffered by its July 2018 acquisition of BitTorrent.

 

How has TRON bucked the trend?

To be sure, TRX is also falling today, down 1.85% at the time of writing.

However, when taking a longer-term view in assessing its past performance, TRON has been able to hold relatively steady around the $0.08 mark for the past couple of weeks.

From a technical perspective, TRON formed a ‘golden cross’ earlier this month, whereby its 50-day simple moving average crossed above its 200-day counterpart.

Such a technical event tends to herald more incoming gains.

TRON defies Q2 crypto selloff

 

TRON also boasts of a 6% climb so far in 2022, in stark contrast to Bitcoin’s year-to-date fall of over 30% and Ethereum’s 50% drop for the same period.

Looking at the charts, Tron has been able to post a series of higher lows since mid-April, in stark contrast to what the likes of Bitcoin and Ether could muster for the same period.

TRON defies Q2 crypto selloff

 

What could be helping TRON go against the flow?

Here’s a controversial word to consider = stablecoin

Much has already been made about the implosion of big-name stablecoins - TerraUSD and Luna.

Yet, it appears there is still adequate demand for such a product, at least for USDD – TRON’s fully decentralized algorithmic stablecoin which made its debut almost exactly a month ago.

Besides its promise for high returns of at least 30%, at least on a promotional basis, perhaps another alluring feature of USDD is that its overcollateralized by more than 200% (214.74% to be more precise, according to the Tron DAO Reserve website). That’s well above its pledged minimum guaranteed collateral ratio of 130%, using reserves comprising Bitcoin, Tether, and even TRON’s own TRX.

Still, only time will tell whether USDD can avoid the same fates as Luna and TerraUSD, or even the likes of Neutrino and Basis – other algorithmic stablecoins that seek to stay at a constant price.

Until then, proponents of TRON and its linked assets will be eager to continue helping its crypto swim against the tide for as long as it can, as broader market sentiment continues being beleaguered by woes stemming from an ultra-aggressive Federal Reserve that may inadvertently trigger a recession.

 

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