TrueUSD Market Cap Surges 120% In 4 Months After Binance’s Backing

TrueUSD’s market capitalization is surging, rising by 120% in just four months from January 2023. The increase can be attributed to Binance’s backing, which propelled it as the fifth-largest stablecoin behind USDT and USDC.

TUSD Emerges As A Popular Trading Pair on Binance

The stablecoin’s recent popularity comes after Binance picked TUSD as a favored stablecoin trading pair on its platform. This comes after Binance’s BUSD stablecoin became a prime target in a US regulatory crackdown. 

New York regulators ordered Paxos, the issuer of BUSD, to stop minting new tokens hours after the United States Securities and Exchange Commission (SEC) issued a Wells Notice to the stablecoin minter. Coinbase, which jointly launched USDC with Circle, also announced that it would delist BUSD from the exchange citing its failure to meet listing standards.

Binance had previously supported BUSD through a zero-fee trading promotion and by booting rival stablecoins, including USDC, from its platform. Following the New York directive for Paxos, Binance reintroduced trading with TUSD in early March, then granted a zero-fee trading promotion exclusively to the BTC-TUSD pair starting March 22. 

Bitcoin Price On April 25| Source: BTCTUSD On Binance, TradingView
Bitcoin Price On April 25| Source: BTCTUSD On Binance, TradingView

This week, the exchange expanded TUSD trading to popular cryptocurrencies, including SOL, OP, MATIC, and XRP. TUSD also launched on the BNB Chain.

According to data by Nansen, Binance minted around $130 million worth of TUSD in the past seven days, making it a favored stablecoin trading pair on the platform.

The surge in TUSD’s popularity followed Binance’s decision to eliminate the zero-fee trading discount on its platform, except for the BTC-TUSD pair. 

As a result, TUSD’s 24-hour trading volume surpassed $1 billion at the time of writing, a significant increase from earlier this month when it mainly recorded sub-$100 million daily trading volume.

The BTC-TUSD pair on Binance alone recorded $713 million in trading volume in the past 24 hours.

TrueUSD Gaining Despite Turmoil

ArchBlock, formerly known as TrustToken, issues TUSD as a stablecoin pegged to the USD. The value of TUSD is fully supported by fiat assets, as confirmed by ChainLink’s proof-of-reserve monitoring tool. 

In 2020, TUSD’s intellectual property rights were acquired by the Asian conglomerate Techteryx.

With the stablecoin market wrestling with ongoing regulatory actions and a banking crisis, TUSD is blooming. Its market capitalization mushroomed from below $800 million at the start of January to explode above $2 billion by late April 2023, a 120% surge. 

While TrueUSD’s rapid growth is impressive, larger buy and sell orders are still placed for the USDT-BTC pair. Clara Medalie, Head of Research at Kaiko, believes the trend suggests that traders are still reluctant to use TUSD despite zero fees because it is relatively unknown.

Feature Image From Canva, Chart From TradingView

Source: https://bitcoinist.com/trueusd-market-cap-surges-120-in-4-months/