- Tron price has made a strong comeback in the past few years.
- The rally happened as the USDD stablecoin gathered momentum.
- Its DeFi TVL surged to over $6.15 billion led by JustLend.
Tron price has started June on a high note as demand for the ecosystem continues. The TRX token is trading at $0.089, which is about 73% above the lowest level in January this year. It is hovering near its highest level in December, bringing its total market cap to over $8.3 billion.
Tron ecosystem growing
Tron is a leading blockchain project that was started by Justin Sun. In the past few years, the platform has become one of the most important operating systems in the world.
According to DeFi Llama, Tron has been used to build 9 DeFi applications. These apps have a combined total value locked (TVL) of more than $6.15 billion, making it the third-biggest player in the industry.
The biggest app in Tron’s ecosystem is JustLend, which has a TVL of more than $3 billion. It is a DeFi platform that allows people to deposit and borrow stablecoins like Tether and USD Coin. Other leading apps in the ecosystem are JustStables and SunSwap among others.
Learn more about how to buy Tron.
The Tron price has also done well because of its new stablecoin which is known as USDD. It is an algorithmic stablecoin that works in a similar way to Terra USD. According to CoinMarketCap, the total market cap of all USDD in circulation is over $662 million.
Therefore, some analysts believe that Tron faces some of the risks that Terra faced even though USDD is a smaller part of its ecosystem. The risk is that it is relatively easy for USDD to de-peg since it is not backed by anything. Instead, its stability is pegged to the success of the algorithm.
Tron price prediction
The daily chart shows that the TRX price has performed relatively well in the past few weeks. It has outperformed other cryptocurrencies like Bitcoin and Ethereum. At the same time, it has moved above the 25-day and 50-day moving averages while the MACD has moved above the neutral point.
Therefore, the coin will likely continue rising as bulls target the next key resistance level at $0.110. On the flip side, a drop below the support at $0.076 will invalidate the bullish view.
