TrueUSD’s slip from $1 peg deepens amid broader sell-off as FDUSD thrives News ▸ Binance ▸ Stablecoins
TrueUSD’s slip from $1 peg deepens amid broader sell-off as FDUSD thrives
Binance-listed FDUSD's supply has increased by more than $800 million since the beginning of the year.
2 min read
Updated: Jan. 23, 2024 at 12:21 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
TrueUSD (TUSD) deviation from its $1 peg has widened under the current red market situation.
Data from CryptoSlate shows that the stablecoin dipped as low as $0.9778 in the past 24 hours, coinciding with substantial sell-offs seen in the major cryptocurrencies like Bitcoin and Ethereum.
On Jan. 16, CryptoSlate highlighted increased volatility in TUSD’s value as holders opted to liquidate their assets in favor of competing stablecoins like Tether’s USDT.
Addressing these concerns, the project’s team attributed the deviations in the asset’s price to community mining activities associated with Binance Launchpool. They affirmed the functionality of their redemption channels and the asset’s daily routine attestations.
Trading data indicates that community apprehensions persist despite this clarification, as evidenced in the TUSD Curve pool. The dashboard shows that the stablecoin accounts for nearly 90% of the pool’s $70,000 reserve. In contrast, USDT comprises around 6%, with Circle’s USD Coin (USDC) and DAI comprising 4%.
Furthermore, TUSD’s total liquidity on the Uniswap decentralized exchange stands at a modest $31,000, and its trading volume in the past day remains below $1000.
Over the past year, TUSD has encountered notable challenges, including ownership controversies tying it to Justin Sun and issues about potential exposure to bankrupt crypto custodial firm Prime Trust.
These challenges have adversely affected the stablecoin’s supply, witnessing a more than 43% decline over the last two months to $1.9 billion, according to CryptoSlate’s data. TUSD had seen a dramatic uptick the previous year, climbing to a peak of $3.5 billion in September from $840 million at the start of the year.
FDUSD rising
First Digital USD (FDUSD) is emerging as a significant winner amidst these TUSD challenges.
Binance’s preference for FDUSD has contributed to its remarkable market capitalization surge of $800 million this year, reaching an impressive $2.65 billion as of press time, according to CryptoSlate’s data. Binance is the largest crypto exchange by trading volume.
Since the crypto trading platform listed the asset in July 2023, FDUSD has rapidly ascended to become the fourth-largest stablecoin by market cap, trailing behind USDT, USDC, and DAI. This ascent can also be attributed to setbacks experienced by other stablecoins favored by Binance, such as Binance USD (BUSD) and TUSD.
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Posted In: Binance, Stablecoins
Author 
Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
TrueUSD, a USD-backed stablecoin you can exchange and trust.
Tether
$0.99952
Launched in 2014, Tether is a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner.
USD Coin
$1.00005
USD Coin (USDC) is a stablecoin fully backed by the US dollar and developed by the CENTRE consortium.
Binance USD
$1.00161
BUSD is a stablecoin issued by Paxos in partnership with Binance..
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Justin Sun has carved a name for himself as a leading figure in the blockchain sector.