Cryptocurrencies built on Ethereum rose 70% as analysts warned Tron could see a 99% drop.

Over the last 30 days, the cryptocurrency market has experienced, With the bankruptcy of UST / LUNA, one of the biggest drops in history, an event that caused Bitcoin to fall to $ 25,000.

Although some of its value has been recovered after taxing the Earth’s ecosystem, This did not save BTC from stress, instability and side trading.

In the last 7 days, for example, the main cryptocurrency in the market Studied the rally leading up to BTC $ 31K, After a while, however, the upward movement appeared Just a ‘dead cat jump’ and the cryptocurrency is back below $ 30K.

However, while the major cryptocurrencies in the market, like ETH, are struggling to recover some of their value, an Ethereum-based altcoin bear is undermining the market.

XCN, Governance Token and Utility for Chain Cloud Blockchain Protocol, Has increased by more than 70% in the last 30 days andWith the upward movement, crypto assets increased in the cryptocurrency market capitalization ranking, From 51 to mid-May 28.

The company also announced that it is hiring new employees, Large market companies such as Tesla, owned by Gemini, Coinbase and Elon Musk, are announcing massive layoffs.

According to DailyHodal’s analysis, the rise of cryptocurrency is related to several factors. Such as making XCN tokens available on BNBChain and then listing them on major exchanges like Huobi, Gate.io and KuCoin.

Moreover, Developers recently announced the burning of X 2.6 billion worth of XCN, more than 22% of total token supply.

“Burning XCN tokens means making our property DAO. This phase recognizes the impact of XCN on Web 3.0 development and the innovators who use it to build chains. ” Deepak Thapaliyal, CEO of Chen, said.

Analysts warn of a 99% drop that could come to Tron

However, as the XCN rises, analyst Iron Ferreira, lead researcher at Titanium Assets, warns that the market is not immune to new disasters, and again, to algorithmic stablecoins.

Ferreira told Quintelegraph that Do Quan, co-founder of the Terra Network project, had a plan similar to what happened to the Ethereum network in 2016, after the Dao hack, when approximately US $ 60 million was stolen, leading to an increase. On the current Etherium and who put the first version called Etherium Classic.

However, in the case of Terra (LUNA) the new network has already started with problems in the distribution of airdrop tokens, with some users receiving less.

“The success of the new network will largely depend on incentives to attract developers and actions to restore community and investor confidence, which is possible, but very difficult to happen, as the impact on the project’s image has been huge.” There is encouragement, ”he said.

However, he noted that investors need to be aware of what happened to UST / LUNA and later with the proposed measures (LUNA Classic and LUNA) and carefully monitor Tron’s proposal with Stablecoin, Algorithmic, USDD.

“Some of the issues in the recent movement of TVL (Total Value Locked) are that the total money locked up in DeFi Dapps (decentralized application of decentralized finance) on Tron refers to what happened on Earth,” he highlights.

Analysts point out that with the launch of USDD, the Tron blockchain has become the third largest in TVL, and this proportion has increased by almost 50% in 1 month. There are only 9 DeFi Dapps in the network, which means that this TVL is concentrated in a few Dapps.

Tron’s TVL is second only to Ethereum’s TVL, with $ 69.7 billion TVL and 489 protocols, and Binance Smart Chain, with $ 8.55 billion and 400 protocols. Tron’s TVL is now 6.25 billion.

“This sudden increase is a bad omen and a warning that something unsustainable could recur. Of the 9 Dapps, the three biggest TVLs are JustLend, JustStable and SunSwap. May was one of the lessons left over from the crash. TVL The increase in cannot be used as the sole indicator, especially when this TVL is distributed across certain protocols “, he notes.

Also, according to the analyst, what happened with UST is very recent, proving that algorithmic stablecoin is not yet clearly feasible.

“Justin Sun, CEO of Tron, has a lot of work to do to prove the feasibility of algorithmic stablecoin. However, the USDD system is similar to UST, because according to the White Paper, USDD indexing will be done through it. Despite being older than Earth, there is a lot of similarity in this case and the risk is high “, he concludes.

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“Disclaimer: The information and / or opinions expressed in this article do not represent the views of the Quintilegraph or the editorial line. The information presented here should not be construed as financial advice or investment recommendation. It is everyone’s responsibility to do the right thing. “*

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