Justin Sun, the founder of TRON blockchain, shared his thoughts on Twitter about the effects of the SVB crash on the Asian markets.
Sun expressed confidence in the limited impact on the Asian economy following the collapse of the two main crypto-focused banks, the other being Silvergate Capital.
Previously, the TRON founder emphasized the value of stablecoins to the ecosystem and supported the notion of establishing a banking system to bridge the divide between conventional finance and cryptocurrencies.
During the weekend, the failure of the crypto banking trifecta had an impact on the market for digital assets, particularly stablecoins.
To recall, USDC issuer Circle recently admitted to having $3.3 billion reserves with the beleaguered SVB after the second-most liquid U.S. dollar-pegged stablecoin – lost its peg, dropping below 87 cents at one point.
Given USDC’s domineering influence, major stablecoin ecosystems followed suit in de-pegging from the U.S. dollar.
The supply of TRON’s algorithmic stablecoin USDD decreased as well, practically halving from $1.03 billion at the beginning of March to a little over $530 million as of March 12.
USDD reacted negatively to the USDC sell-off with a nearly 7.5% drop to trade at $0.98 at press time.
On the other hand, as panicked investors sought out alternatives, the other stablecoins surprised everyone by taking over the platform. Tether [USDT], the largest stablecoin in the world, now has a supply of over 40 billion.
According to Tronscan data, the supply of USDT increased significantly after Paxos stopped minting BUSD, the second stablecoin under pressure in the ecosystem.
Notwithstanding the repercussions, Tron published a blog post recently detailing the status of some of the significant projects that were based on the ecosystem.
Upcoming Projects In TRON Ecosystem
Blockbank, a platform for financial services, was one of the significant projects in the pipeline. TRON and Blockbank teamed up to develop credit cards that can be loaded with TRX and used much like Visa cards.
TRON team also talked about the Unifi protocol, a platform for smart contracts created to support the growth of decentralized finance [DeFi].
At the time of publication, TRX’s price had risen by about 12% on CoinMarketCap, with a staggering 116% spike in trading volume.
