This week the Tron blockchain has become the third-largest network in terms of total value locked (TVL) in decentralized finance (defi) protocols. Interestingly, 48.19% of the TVL is held by the defi protocol Justlend, an application that’s similar to Anchor Protocol as it offers more than 20% APY for USDD deposits. Amid Tron’s TVL rising, the network’s stablecoin USDD has been confronted by skeptics over the similarities USDD holds with Terra’s UST.
On May 30, 2022, Tron managed to become the third-largest defi blockchain in terms of total value locked. At the time of writing, Tron’s TVL in defi is $5.94 billion, which is just below the Binance Smart Chain (BSC) TVL and above the Avalanche (AVAX) TVL.
Other notable defi applications on Tron, in terms of TVL balances, include Juststables and Sunswap. Juststables has a TVL balance of $1.41 billion and Sunswap has just under a billion in total value locked. USDD has also managed to become the ninth-largest stablecoin among all the fiat-pegged tokens in existence.
Like nominally the algorithm in Terra was the mechanism which refilled the AMM in the market module (they lied about this a bunch). This doesn’t seem to have an algorithm at all.
Despite the criticism and speculation, Tron has managed to be a top contender in the world of decentralized finance. Furthermore, Tron’s native token tron (TRX) has managed to climb to the 14th position in terms of the largest market caps in the crypto economy.
This is because while bitcoin (BTC), ethereum (ETH), and many others printed weekly losses for nine weeks in a row, Tron managed to stave off most of the market carnage. TRX is up 14.7% during the last two weeks and 30.5% against the U.S. dollar over the last month.
What do you think about Tron becoming the third-largest in decentralized finance today in terms of TVL? Let us know what you think about this subject in the comments section below.