Can TUSD, USDP overtake BUSD? Analyzing the shifting stablecoin market

• TUSD and USDP gained popularity in market share, with TUSD leading the race.
• The mean dollar invested age, market capitalization, and exchange reserve metrics show TUSD and USDP’s steady growth.

Recently, the stablecoin market experienced significant changes, creating an opportunity for other stablecoins, such as Pax Dollar [USDP] and TrueUSD [TUSD], to grab the market share. Since Binance’s [BUSD] decline following CFTC’s allegations, there has been a vacancy at the top of the list. Which of these stablecoins can take over the top spot?

USDP and TUSD mean dollar invested declines

According to recent findings from Santiment, TUSD, and USDP have been significantly impacting the stablecoin market of late. The data revealed that TUSD’s mean dollar invested age stood at 159.39 at press time, the lowest it had been in the past 14 months. Similarly, the mean dollar invested age for USDP was 78.75, representing the lowest figure in the past 21 months.

Source: Santiment

A high mean dollar invested age in the stablecoin market could be a positive sign, indicating that investors were confident in the long-term potential of cryptocurrencies and were holding onto them for extended periods. It could also imply a limited supply of sellers, leading to increased prices.

In contrast, a low mean dollar invested age may indicate new investors entering the market, driving the demand for stablecoins. 

USDP and TUSD market capitalization

CoinMarketCap‘s data revealed that TUSD had a robust market presence at press time, with a market cap exceeding $2 billion and a 24-hour trading volume over $531 million. During this time, TUSD ranked as the 13th-largest coin by market cap and the fifth-largest stablecoin by market cap. Interestingly, TUSD’s 24-hour trading volume surpassed that of Maker [DAI], despite DAI being the fourth-largest stablecoin by market cap. 

In contrast to TUSD, USDP had a relatively smaller market presence, with its market cap exceeding $877 million and a 24-hour trading volume of over $22 million. USDP ranked as the 58th-largest coin by market cap and the sixth-largest stablecoin by market cap. While USDP’s press time market cap was impressive, its lower 24-hour trading volume suggested it may not be as actively traded as other stablecoins.

Analyzing the exchange reserve

Exchange reserve is another important metric that indicates the popularity of stablecoins in the crypto space. According to CryptoQuant, USDP’s exchange reserve had seen mixed fortunes, but it has recently been on an uptrend, reaching over 115 million as of this writing. 

Source: CryptoQuant

CryptoQuant’s data further suggested that TUSD has had a better exchange reserve run than USDP. The stablecoin’s exchange reserve has been relatively steady since its rise in January, with its press time value exceeding 513 million. This indicated that TUSD was being traded actively and held by investors on exchanges at the time of writing, reflecting its growing popularity in the crypto market.

Source: CryptoQuant

Additionally, the growth of this metric meant that more investors were using these stablecoins to trade, indicating their importance as a reliable trading pair.

TUSD leads the stable race… for now

The current regulatory issues surrounding BUSD and the recent bank run that impacted USDC have led investors to look for alternative stablecoins that offer greater stability and security. In this context, TUSD and USDP have emerged as potential contenders for the top spot among stablecoins.

However, based on the metrics discussed earlier, TUSD is better positioned to take the top spot if it becomes available. TUSD’s higher market cap and trading volume, coupled with its steady growth in exchange reserve, suggest it has a more established presence in the stablecoin market. 

In contrast, while USDP has shown growth in some metrics, it may not be as established as TUSD.