Tron's USDD Stablecoin Experiences Fluctuations Again, Drops Below $1 Parity in Early 2023

The Tron-based stablecoin $USDD fell below $1 parity again during the first week of 2023 and on Jan. 10. Four days ago, the stablecoin dropped to $0.972 per unit and on Tuesday, Jan. 10, 2023, $USDD slipped to $0.977 per unit. At the time of writing, the Tron-issued stablecoin is trading at 98 cents per coin.

$USDD Stablecoin Dips Down to 97 Cents per Token

There have been some slight fluctuations in $USDD’s price at the start of the new year, as the stablecoin has dipped to the 97-cent range on a few occasions in 2023. After Terra’s stablecoin depegging event in May 2022, $USDD started to slip slightly below the $1 peg, causing anxiety in the crypto industry. A number of other stablecoins saw similar deviations. On June 19, 2022, $USDD reached a low of 92.8 cents per unit, but the stablecoin managed to regain the $1 peg, trading between 98 cents and 99 cents per unit.

Tron’s $USDD stablecoin 30-day view against the U.S. dollar on Jan. 10, 2023.

In mid-Dec. 2022, $USDD deviated from the $1 parity, and Tron’s Justin Sun said that the team deployed more capital. $USDD has seen fluctuations in value since Dec. 11, 2022, and it reached a low of $0.971 on Dec. 13, 2022, according to coingecko.com statistics. Last week, a similar instance occurred as the $USDD price dipped to $0.972 per unit on Jan. 6, 2023. Charts show that $USDD’s action four days later on Tuesday, Jan. 10, 2023, indicates that the stablecoin slid to a low of $0.977 per unit during the past 24 hours.

Tron DAO Reserve page on Jan. 10, 2023.

According to the project’s Tron DAO Reserve page, $USDD is over-collateralized by 202.41% compared to projects like DAI, which is 120%, and USDT and USDC at 100%. $USDD is currently the eighth-largest stablecoin by market capitalization, which is $710.03 million at the time of writing on Tuesday 4 p.m. Eastern Time. The number of $USDD in circulation is higher at 725,332,035.

Currently, there is roughly $33.44 million in global $USDD trade volume during the past 24 hours. With $USDD trading at 97 cents at times, it means that someone who owns 1,000 $USDD can only get around $970 in U.S. dollars. Meanwhile, the rest of the top ten stablecoins on Jan. 10, 2023, are trading for USD values between $0.997 to $1. Statistics further show that $USDD’s coins in circulation grew by 0.8% over the last 30 days.