USDD Stablecoin Users Increased by 500% in Q3November 3, 2022
- TRON’s USDD stablecoin has seen a 500% increase in users between Q2 and Q3 2022. The percentage of TRX deposits grew by 9.7%.
- The number of transactions hit a stable value, while transaction sizes dropped. The average number of USDD holders is 120,000, while the average value held is 6000 USDD.
- TRX has not reacted significantly to recent news, though TRON became the national blockchain infrastructure of Dominica and founder Justin Sun became an advisor to Huobi.
The beleaguered Tron stablecoin USDD has broken out of its slump, with a 500% increase in users in Q3. Crypto market intelligence firm Messari published a report on Nov. 3, highlighting how the stablecoin had seen growth across a few metrics.
1/ As @trondao’s $USDD returned to peg following the Q2 chaos, supply growth stagnated.
A positive growth metric was the number of wallets holding $USDD which saw 5x growth over Q3.
The increased adoption is needed for $USDD supply and $TRX value.🧵 pic.twitter.com/dqFDarMOoh
The better performance is a positive sign for the dollar-pegged stablecoin, which depegged in Q2 2022. The number of holders grew from 20,795 to 120,698 between Q2 and Q3, which amounts to a 480% increase. The percentage of TRX deposits also grew by 9.7%. On the flip side, the total reserve balance fell by -5.3%.
Messari also reported that USDD appears to be sufficiently backed by non-native collateral in the form of collateral that includes BTC, USDT, and USDC. It also noted that the TRON DAO Reserve could sell $725M of TRX to back USDD. TRON DAO bought $50 million worth of BTC and TRX to add to its reserves in June.
Transaction sizes have dropped on the network, but the number of transactions is hitting a stable value. Adoption appears to be stagnating, as the average number of USDD holders in total is about 120,000. The average value held is 6000 USDD.
The report also notes the actions taken following the depegging incident. Since June, USDD has stuck to its peg and implemented the Peg Stability Module to maintain its peg, which uses USDT, USDC, TUSD, and USDJ.
TRON’s October Report Shows Progress
TRON released its monthly report for October earlier this week, and the figures also indicate growth. Last month saw 4.4 million new accounts added to the network. The project hit a milestone of 100 million accounts in June as it was celebrating its fourth anniversary.
🚀#TRON Monthly Report of October! Check out!
✅#TRON has been designated as the national blockchain infrastructure of Dominica.
✅@justinsuntron was invited to be the global advisor of @HuobiGlobal.
✅#TRON Grand Hackathon Season 3 is in full swing. pic.twitter.com/oXcZAUqRu1
There have also been developments in terms of adoption and ecosystem growth. Binance.US launched TRX staking, the project added the USDJ token to the Peg Stability Module, and TRON became the national blockchain infrastructure of Dominica.
The TRX token is down 1.7% over the past week. It does not seem to have reacted to the report or any of the recent events, including founder Justin Sun becoming an advisor to Huobi.
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