TrueUSD (TUSD)’s, a recently launched stablecoin, 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 U.S. 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.
We regularly monitor the assets on our exchange to ensure they meet our listing standards. Based on our most recent reviews, Coinbase will suspend trading for Binance USD (BUSD) on March 13, 2023, on or around 12pm ET.
— Coinbase Assets (@CoinbaseAssets) February 27, 2023
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.
This week, the exchange expanded TUSD trading to popular cryptocurrencies, including SOL, OP, MATIC, and XRP. TUSD also launched on the BNB Chain.
8/ Stablecoins
TrueUSD (“TUSD”) has launched on @BNBCHAIN as a native token. Users can mint and redeem native BNB Chain TUSD through the @tusdio website, paving the way for TUSD’s further integration into the ecosystem.
— Binance Research (@BinanceResearch) April 14, 2023
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.
#TUSD has risen to a 6% share of Stablecoin Trade Volume since BUSD halted issuance in February
Do you think TUSD will continue to rise in popularity? pic.twitter.com/OSzsLfL1k4
— Velvet.Capital (@Velvet_Capital) April 11, 2023
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.
For those seeking for secured minting, transparency & real-time status of data behind their #Stablecoin reserves, #TUSD might fit the bill.
With onchaining its reserve data & secure minting, check out the below diagram to learn how TUSD makes it with the help of @chainlink PoR. pic.twitter.com/WwSWLyq8cV
— TrueUSD (@tusdio) April 14, 2023
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 TUSD’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.