After Binance removes charging fees on the BTC/TUSD trading pair, Bitcoin traders on the exchange swiftly switched to TUSD. As a result, TrueUSD (TUSD) has risen to become the fifth-largest stablecoin by market capitalization. Furthermore, it is now the preferred dollar-pegged cryptocurrency for Binance since late February.
In the previous week, the BTC/TUSD trading pair surpassed 50% of Binance’s Bitcoin trading share, overtaking the BTC/USDT pair. Kaiko, a provider of crypto market data, revealed in an analysis on Monday that the BTC/TUSD trading pair became the primary Bitcoin market on Binance in the previous week. This is a significant shift from the overwhelming dominance of BTC/USDT as recently as the previous month.
The Stablecoin Timeline
Tether launched USDT, one of the earliest dollar-pegged stablecoins, in 2014. It then continues to be the largest such token by market capitalization. As of April 2023, it has captured over $80 billion in value. Furthermore, it maintains its peg to the dollar using a combination of liquid reserves, including cash and short-term US Treasury bills.
Additionally, the replacement of Circle’s USDC with BUSD at Binance in September further propel USDT. Tether gained significant ground against USDC, one of its primary competitors. Tether’s market capitalization benefited even more after USDC experienced a temporary depegging from the dollar during the Silicon Valley Bank crisis in March. However, Binance’s dependence on BUSD was disrupted when its issuer, Paxos, was instructed by US regulators to begin winding down operations in February. To mitigate this dependence, Binance rapidly started producing tens of millions of dollars in TUSD. As of April 17, TUSD’s market cap has exceeded $2 billion, compared to approximately $966 million on February 27.
TrueUSD operates similarly to Tether, holding over $2.15 billion in bank reserves to back its stablecoin. In collaboration with Chainlink, the company employs a real-time proof of reserves system to ensure that its stablecoin is fully backed by assets at all times.
Closing Thoughts
Will TrueUSD soon become the new rival of USDT? It currently has a market cap of $2,144,790,979 and a 24-hour trading volume of $1,464,971,958. Check out the live price of TUSD now! Furthermore, you can purchase TUSD right here on MEXC. Here is a guide on how to buy TUSD.
In the meantime, check out our MEXC trading page and find out what we have to offer! Do not miss out on the golden window. You can learn more about crypto industry news and interesting articles to get you up to speed with the crypto world. Happy trading!
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