TrueUSD (TUSD) Market Cap Jumps to $3.4B, Overtakes Binance USD (BUSD)
TrueUSD (TUSD) recently announced a market cap of $3.4 billion, surpassing Binance USD (BUSD) for the first time.
This landmark event comes on the heels of Binance’s decision to phase out its support for BUSD—a move spurred by US regulatory pressures.
TUSD Overtakes BUSD Amid Regulatory Showdown
Binance, the behemoth in global cryptocurrency trade volume, discontinued its support for BUSD after the token’s issuer, Paxos, stopped minting new tokens. Regulatory heat from US authorities prompted Paxos to halt production, compelling Binance to revisit its portfolio strategy.
This announcement marked a watershed moment, degrading BUSD’s market valuation to just below $3 billion, according to Etherscan data from September 3, 2023.
Meanwhile, TUSD — once considered a lesser rival to BUSD — saw its fortunes soar. Within a three-day span, TUSD’s supply swelled from 2.9 billion to 3.438 billion, representing a remarkable 18.55% growth.
TrueUSD TUSD Market Cap Chart. Source: CoinMarketCap
Factors That Helped Boost TUSD
Several factors appear to have contributed to TUSD’s sudden ascendancy, many of which pertain to Binance’s changing tactics.
For example, Binance recently launched two projects, Sei and CyberConnect, on its Launchpool platform. There, users can stake their TUSD to farm new tokens. The crypto exchange also introduced new pairs CYBER/TUSD and SEI/TUSD, embedding TUSD into its ecosystem.
Read more: 7 Best Binance Alternatives in 2023
Furthermore, TUSD became accessible via the crypto payment gateway Alchemy Pay, extending its reach to 173 countries. These maneuvers reveal how deeply integrated TUSD has become with Binance, even as the latter pivots away from its own stablecoin, BUSD.
According to data analytics firm Nansen, Binance holds over 5% of the TUSD supply and manages an astonishing $17 billion worth of Tether (USDT). These holdings show Binance’s strategic flexibility as it navigates regulatory scrutiny and market competition.
TUSD also focused on amplifying its user experience, a key strategy in capturing a larger market share. Launching a new domain and a redesigned website aims to offer a seamless user experience.
Read more: What Is a Stablecoin? A Beginner’s Guide
Within the broader stablecoin ecosystem, TUSD’s surge illustrates the fluid dynamics of a marketplace conditioned by regulatory realities and strategic business decisions.
TUSD took advantage of an opportune moment to grow its market share. However, its rise also underscores the precariousness of crypto, where market positions can shift dramatically in a matter of days.
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.
This article was initially compiled by an advanced AI, engineered to extract, analyze, and organize information from a broad array of sources. It operates devoid of personal beliefs, emotions, or biases, providing data-centric content. To ensure its relevance, accuracy, and adherence to BeInCrypto’s editorial standards, a human editor meticulously reviewed, edited, and approved the article for publication.