Tron Price Tumbles as DeFi TVL Holds Above $4B

Tron price crashed to the lowest level since November 24 as the crypto market waited for the upcoming interest rate decision by the Federal Reserve. TRX was trading at $0.051, which was much lower than the weekend high of $0.055.

Tron TVL holding well

Tron price has been in a downward trend as investors watch the performance of its ecosystem. Data compiled by DeFi Llama showed that the platform’s TVL has held quite well compared to other chains like Solana and Optimism. 

The network has a TVL of more than $4.8 billion, making it the third-biggest chain in the world after Ethereum and BNB Chain. Most of its DeFi platforms have seen their TVL jump by about 6% in the past 30 days. JustLend TV has risen by 5.28% to $3.29 billion. JustStables and SUN.io have risen to $904 million and $601 million.

Tron price declined as Justin Sun moved to reassure the community about the stability of USDD, the algorithmic stablecoin. In a statement, he referred users to the stablecoin’s website, which shows that it is over-collateralized by 200%. 

Data in its website shows that USDD has a total market cap of over $725 million against collateral of over $1.4 billion. In contrast, USD Coin and Tether are all backed by 100%. Therefore, it means that all USDD holders can easily demand their funds without affecting its peg.

Tron price also reacted to the ongoing burn rate in the ecosystem. In a tweet, Justin Sun reiterated that the total TRX burned by a transaction on Sunday was over 22.8 million. This means that at that rate, about 9% of TRX will be burned every year.

Tron price prediction

The 4H chart shows that the TRX price has been in a strong sell-off in the past few days. In this period, it has managed to move below the important support level at $0.052, the lowest level on December 7. 

Tron price also moved below the 25-day and 50-day moving averages while the Relative Strength Index (RSI) moved lower. Therefore, for now, the outlook for Tron is still bearish, with the next key support for the coin being at $0.050.