USDD Enters the Stablecoin Competition as Q1 Performance Suggests Increased Liquidity

The stablecoin market has experienced significant turbulence over the past quarter, partly due to the collapse of Silicon Valley Bank. Amidst the uncertainty faced by several stablecoins, such as USD Coin (USDC) and Maker (DAI), Tron’s stablecoin, USDD, has emerged as a beacon of hope, showing promising progress in the stablecoin sector. According to its Q1 performance, USDD announced some notable partnerships in the crypto market, enhancing its liquidity, accessibility and utility.

USDD’s Partnerships Are Key Reasons For Increased User Activity

In Q1, TronDao’s stablecoin USDD announced some promising partnerships and listings, accelerating its growth to touch new highs. USDD announced a partnership with SwapFishFi on January 11, a decentralized exchange (DEX) built on the TronDao network. The collaboration allowed USDD users to trade the cryptocurrency on another platform, which improved its liquidity.

LayerZero Labs revealed in January that $USDD could be transmitted through the Aptos Bridge. The Aptos Bridge is a cross-chain bridge that connects the TronDao and Ethereum blockchains. This integration provided more flexibility and interoperability to USDD users. Moreover, several cryptocurrency exchanges added USDD to their platform in February. These include the HyperPay Flash Exchange, SushiSwap on BitTorrent, and WombatExchange. As a result of these listings, the liquidity of USDD increased gradually, and users gained more trading options and opportunities to earn yield with USDD.

Furthermore, USDD was included as a reward for Quest3 on QuestN, which is a marketing and growth tool for protocols. QuestN permits protocols to create quests for new users, and incentives (USDD) are rewarded for their contribution, which gave USDD more spotlight in the crypto market.

March witnessed USDD expanding its reach on various crypto infrastructure platforms. Firstly, it became accessible on RealFatPay, which is a crypto on-ramp and payment service provider. Following this, USDD was listed on Blockbankapp, a mobile banking platform that grants users access to crypto services, allowing users more flexibility.

These partnerships have elevated the liquidity, accessibility, and utility of USDD. While most stablecoins experienced high volatility during the quarter, USDD experienced one of its least volatile quarters.

USDD Witnessed Stable Holders Despite Fluctuations

During Q1, the number of individuals who possessed USDD on Tron remained relatively stable at slightly above 130,000, despite market and price fluctuations. Q1 2023 also witnessed the smallest transaction volume of USDD on Tron, in terms of both the number of transactions and overall volume, since its inception. This decline in transaction volume could be attributed to the relatively low-price volatility of USDD in Q1. In contrast, during previous quarters, USDD’s transaction volume surged during periods of uncertainty and de-pegging.

DEXs such as Uniswap, Paraswap, and Curve accounted for a significant portion of USDD’s trading volume. As per Dune Analytics’ data, Uniswap alone was responsible for 85.9% of all USDD volume.

USDD had a considerable gap to cover in comparison to other stablecoins. At the time of reporting, USDC dominates 64% of the market volume, with Tether following closely with 24.5% market share, leaving USDD behind in this aspect. However, regarding market capitalization, USDT has overtaken USDC’s share, which continued to decline. In contrast, USDD’s market cap remained constant during the same period.