Tron (TRX) materialized as the top-performing crypto over the past da at this publication, following an over 16% upsurge. TRX owes the remarkable run-up to the declaration that the Tron blockchain network would introduce an algorithmic stablecoin, the USDD.
The rally happened within two hours following the announcement made via Tron CEO Justin Sun’s website. The notice stated that the Tron DAO patterned with vital stakeholders within the blockchain marketplace to launch the USDD.
The Tron Tao partnered with leading blockchain players to introduce Decentralize USD (USDD), ensuring financial access globally by applying algorithms and mathematics.
The website elaborated that it will use an incentivized mechanism to ensure USDD’s stability. It will introduce arbitrage opportunities that allow users to send TRX worth $1 to the network whenever USDD’s value exceeds USD’s value. If USDD declines beneath $1, participants can send USDD worth $1 to the system and receiver TRX worth $1.
The mechanism will ensure the dollar tie by monitoring the USDD market supply. Meanwhile, the website didn’t disclose the initial stablecoin amount in the marketplace.
Tron (TRX) Price Action
The announcement saw TRX breaking out of consolidation territory within two hours. The alternative token surges from $0.062 day’s low towards 24-hour peaks near $0.074 at this publication. The upward move pushed Tron towards the price areas the alt explored before the April downside correction.
TRX’s price incline also triggered upswings in the MFI and Relative Strength Index towards the overbought territory. Moreover, the Awesome Oscillator stretched upward, escaping the neutral area. An extended upward move will likely hit the resistance around $0.078, matching the 0.236 FIB retracement line.
On-chain metrics show TRX’s development activity and the supply owned by whales surged over the previous 24 hours. The crypto project also recorded a surge in social volume, corresponding with the recent positive price developments.
Tron’s remarkable 24-hour surges come as the broad market battle bearish tendencies. While writing these lines, the overall cryptocurrency market cap stood at $1.88 trillion, dropping 3.77% over the past day. Keeping such narratives may mean challenges for TRX’s continued upward actions.