BitTorrent New Token (BTT) Token Rallies After Migration
BitTorrent Token (BTT) is migrating to a new asset, sparking an outsized rally. BitTorrent New, which now carries the BTT ticker, is up more than 15% in the past week, and above 8% in a single day.
BTT, which is part of the TRON ecosystem, but will migrate to its own BitTorrent chain. The old tokens will be unusable and will be burned upon swapping.
The chief utility of BTT was to have a cryptocurrency tool for subscribing to the services of BitTorrent. The current swapping process is relatively complicated, especially for those holding BTT in custodial wallets.
The swap requires that all BTT holders first deposit their tokens to an exchange of their choice which lists the token. BTT is present on the Binance exchange, which carries its most liquid pair, BTT/USDT.
Once sent to exchanges, users must then withdraw to TRONScan wallet, and only after that move to the actual swapping page. The move to exchanges may require KYC whitelisting, meaning any old BTT held will be tracked more closely.
BTT exists on several blockchains, including Binance Smart Chain, Ethereum, TRON, and the newly created BTTChain.
How is the TRON Ecosystem Growing
BTT is currently held in 161,072 addresses on the TRON network, a small share of more than 100M total TRON accounts. BTT, despite its high profile, is a small part of the TRON ecosystem. In the past, BTT has gone through other migrations as well and continues to exist as a sub-penny asset. BTT remains attractive for short-term opportunities as it rallies from its extremely low price.
The TRON ecosystem is more ambitious, especially as it aims to rebuild collaterals and DeFi after the fall of Terra LFG and LUNA, as well as the liquidity problems of Celsius.
The biggest bid of TRON is the expansion of USDD, its own stablecoin that will become key in the token ecosystem. USDD now has more than 713M tokens in circulation, and its creation is limited to verified TRON DAO members.
The biggest problem for USDD is its unstable peg, as the asset often sinks down to $0.98 – $0.97. For now, USDD manages to return close to its dollar peg, but raises concerns on generating an asset with insufficient support.
USDD is trying to be over-collateralized, but incertain market conditions may act to undermine the stability of collateralized asset creation.
Will TRX Break Out
TRX still trades around $0.06, relatively stable after the June 19 market crash. One of the potential paths for TRX is to rally after USDD is used to support its market price. For now, only one trading pair has been created where TRX trades against USDD.
The biggest warnings on the TRX market price is that the asset may be used to generate USDD, then USDD may be used to support TRON. In a similar way, UST supported LUNA before losing its $1 peg.
USDD has moved down as low as $0.94, but not enough to cause wider panic. For now, TRON DAO and its USDD issuance is much smaller compared to the leverage of Terra LFG.
TRX remains a relatively stable asset, not rallying above $0.08 even during the latest bull market. TRX is also less transparent compared to other L1 solutions, and has not joined the list of mainstream projects to rally during the DeFi boom. During the past days of market turbulence, TRON DAO also had to enter the market and purchase both USDD and TRX to stabilize prices.
The problem is that TRON DAO is supposed to hold reserves backing USDD, and raises the question of whether the value of USDD can be safeguarded by the very same type of asset. Currently, USDD also offers worryingly high returns of up to 30%, as well as opportunities for arbitrage. In a risky and shaky DeFi market, USDD is seen as adding another source of leverage and risk.
However, TRON’s goal is mass adoption, especially after surpassing the milestone of 100M accounts.
There is no way to show that the number of accounts are real users. The TRON blockchain has been abused by bots and in past years, automated transaction mining and DDOS earnings models. TRON also carries high-risk, high-return financial operations, as well as gambling apps.
Despite this, TRX is one of the older and most liquid assets, still leaving entry points for Binance trading with the hope of regaining previous peaks.
Additionally, the TRON network sees a pickup in activity, though it may not signal immediate price action and cannot be taken as a signal that a market bottom has been reached.
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