In recent weeks, TrueUSD (TUSD) has made significant gains in BTC trading volume on Binance, a popular cryptocurrency exchange, due to a zero fee trading discount offered for the BTC-TUSD pair. According to Clara Medalie, head of research at Kaiko, TUSD’s market share in BTC trading volume on Binance rose to 49%, nearly equaling that of Tether’s USDT. However, data from Kaiko also shows that traders are still hesitant to use TUSD, despite its growing market share, media reports said.
Despite Binance’s implementation of a zero fee trading discount for the BTC-TUSD pair last month, which eliminated the promotion from Tether’s USDT stablecoin, TrueUSD’s (TUSD) growth was not enough to counter the sharp drop in trading volume for the BTC-USDT pair following the removal of Tether’s zero fee discount. It appears that traders are still hesitant to use TUSD, as evidenced by the placement of larger buy and sell orders for the USDT pair, despite the absence of fees associated with TUSD usage.
Binance recently chose TUSD as the preferred stablecoin to replace Binance USD (BUSD), which Paxos Trust issued. Binance had paused trading with TUSD for six months after Paxos decided to stop issuing BUSD. Starting March 22, Binance waived the promotion for BUSD and USDT and assigned a zero-fee trading discount to the BTC-TUSD pair.
The stablecoin market is undergoing a major upheaval due to a regulatory crackdown and banking crisis in the US. The stablecoin market has experienced significant disruption in recent months due to a regulatory crackdown and banking crisis in the United States. The New York Department of Financial Services forced Paxos to stop issuing BUSD, the third-largest stablecoin with a market cap of $16 billion. Additionally, the collapse of Silicon Valley Bank, the reserve partner of the second-largest stablecoin USDC, caused USDC to experience outflows of over $10 billion.
Despite these challenges, Tether’s USDT and TUSD have emerged as clear winners. TUSD has become the fifth-largest stablecoin in the crypto market, with a market cap of $2 billion, while USDT’s circulating supply has grown by $10 billion in recent months and is approaching its all-time high.
Stablecoins have a significant role in cryptocurrency by enabling trading on exchanges and acting as a link between fiat currency issued by governments and digital assets. TUSD is a stablecoin pegged to the value of the US dollar and issued by ArchBlock (previously called TrustToken). It is backed entirely by fiat assets.
