Stablecoin TrueUSD supply doubled in three weeks with the support of exchanges
The market capitalization of TrueUSD (TUSD) steiblocoin has doubled in three weeks with the support of leading cryptocurrency exchanges
TUSD trading volume increased by 24%, major cryptocurrency exchanges introduced zero commissions for trading the token in pairs to leading cryptocurrencies
The market capitalization of the TrueUSD (TUSD) stabelcoin has doubled in three weeks amid support from leading cryptocurrency exchanges. According to CoinGecko, the token's supply was nearly $970 million as of February 22 and exceeded $2.03 billion on February 15. Daily trading volume during that time rose 24% from $58.3 million to $72.6 million.
True USD is a stabelcoin created by the TrueFi DeFi Protocol team and runs on Ethereum, TRON and BNB Smart Chain (BSC) blockchains. The tokens are issued by the TrustToken platform, and the fiat reserves are held in escrow accounts owned by several unrelated licensed trust companies. TUSD are issued in quantities equal to the number of dollars received in escrow accounts. The tokens are burned when redeemed.
Since October 7, the TRC-20 token (TRON network) has been recognized as an official means of payment in the Commonwealth of Dominica. According to CoinGecko, on March 15, Stablecoin ranks 5th in this cryptocurrency category by market capitalization, behind Tether (USDT), USD Coin (USDC), Binance USD (BUSD) and Dai (DAI).
Major crypto-exchanges began to support stablcoin and introduce zero commissions for TUSD trading in pairs to leading cryptocurrencies. For example, Huobi announced on March 13 that it will introduce 0% trading fees for trading bitcoin, Ethereum and Tron (TRX) to TUSD for the period from March 14 to June 30, 2023.
The Binance exchange announced support for TUSD on March 11, adding trading pairs with TUSD to bitcoin, Ethereum, BNB and USDT to the platform. The exchange introduced zero commissions on all of these pairs for makers, as well as for takers in BNB/TUSD and ETH/TUSD pairs. According to CoinMarketCap, by March 15, the share of daily trading volume on Binance token TUSD exceeded 23%.
On March 15, Binance announced that the zero commission in bitcoin trading pairs will only apply to the TUSD token. The action will begin on March 22.
TrueFi ecosystem's native token (TRU) exchange rate reacted sharply to Binance's announcement, rising 27% in the moment from $0.11 to $0.14. However, it immediately rolled back to $0.11.
The capitalization and trading volumes of TUSD are growing amid the difficulties faced by the other leading stackcoins - BUSD and USDC. Binance USD was banned by U.S. regulators on Feb. 13, after which its supply almost halved from $16.1 billion to $8.3 billion. And USDC lost its peg to the dollar and dropped to $0.87 after news of the Silicon Valley Bank (SVB) closing on March 11. Since then, its capitalization has fallen 8.7% from