In the last 48 hours, the Tron DAO Reserve has withdrawn more than 5 billion TRX resulting in TRX’s price falling below $0.06.
Ever since the Tron stablecoin USDD began depegging three days ago, Tron DAO Reserve has been attempting to safeguard the overall blockchain industry and crypto market.
In line with the same, the Reserve has been withdrawing millions and billions of TRX from Centralized as well as Decentralized exchanges.
As the stablecoin began depegging, Tron’s native token TRX also began losing value. This is because the wavering confidence of TRX holders led them to liquidate their holdings in order to protect them from losses.
This impacted the Futures market as well wear shorts contracts noticed higher liquidations than long contracts. In the span of 72 hours, over $13.3 million worth of Shorts liquidations were recorded, and about $11 million worth of long contracts were liquidated.
Thus to protect TRX from being shorted too much, Tron began deploying TRX from the Tron DAO Reserve. Initially, about $2 billion worth of TRX was deployed, and since then, Tron has been consistently withdrawing more TRX.
Within the last two days, more than 7 billion TRX worth over $420 million has been withdrawn from exchanges.
The most recent bout of withdrawal was announced today, with the Reserve pulling about 3 billion TRX from Centralized exchanges as well as Decentralized Finance (DeFi) lending platforms.
To safeguard the overall blockchain industry and crypto market, TRON DAO Reserve will withdraw another 3 billion #TRX out of Cefi exchange and Defi lending platform.
— TRON DAO Reserve (@trondaoreserve) June 16, 2022
In addition to this, on multiple occasions, millions of more TRX were withdrawn, some even as USDC. Tron Reserve sent millions of USDC on Tron to Binance to purchase TRX worth the equivalent amount for the same purpose.
To safeguard the overall blockchain industry and crypto market, TRON DAO Reserve have transferred 100 million #USDC on TRON to binance to purchase #TRX. https://t.co/lVTDlvQNEL
— TRON DAO Reserve (@trondaoreserve) June 15, 2022
While Tron is doing its best to save both the assets, the broader market bearish cues have been unrelenting in countering its recovery.
In the span of a week, the altcoin declined by 32.02% to trade at $0.05 at its lowest. Following this yesterday, TRX recovered by 13.25%, but at the time of writing, it fell again by 4.55%, trading at $0.06.
Thus despite Tron’s efforts, the market really isn’t changing much for both the cryptocurrencies, and as a result, Tron could continue with its withdrawing strategy if TRX does not recover from its lows soon.
Holding a Mass Media Degree has enabled me to better understand the nitty-gritty of being a journalist and writing about cryptocurrencies’ news and price movements, effects of market developments, and the butterfly effect of individual assets nurtured me into a better investor as well.