Binance Releases Over $130 Million Worth of TrueUSD Stablecoins in 7 Days, Boosting Market Capitalization
Binance has recently released an additional $130 million worth of TrueUSD (TUSD) stablecoins in the past seven days, according to data from Nansen, a statistical unit. This move has caused the circulating supply of the stablecoin to exceed $1.1 billion.
With this new market capitalization, TUSD has overtaken Frax (FRAX) to become the fifth largest stablecoin in the cryptocurrency market, behind Tether (USDT), USD Coin (USDC), Dai (DAI), and Binance USD (BUSD) – Binance’s own stablecoin that is facing increased legal pressure from the US government. TUSD, formerly known as TrustToken, is a stablecoin issued by ArchBlock. According to data from Chainlink, TUSD is fully backed by cash.
With BUSD’s continuous decline in market share, the circulating supply has dropped by up to $5 billion in the past month alone, and it has fallen out of the top 10 largest market capitalization cryptocurrencies. Other stablecoins are now entering the competition to gain market share from this cryptocurrency.
At the same time, the TrueFi (TRU) cryptocurrency lending project, which is associated with TUSD, has experienced a strong surge after news of Binance’s first release of TUSD appeared.
Stablecoins are designed to have low volatility and are often pegged to a stable asset, such as the US dollar. They are used to provide a stable trading medium for cryptocurrency traders and investors. The recent surge in the release of TUSD shows the growing demand for stablecoins in the cryptocurrency market.
Despite the growing competition among stablecoins, TUSD’s fully cash-backed status is likely to attract more investors, particularly those who are concerned about the volatility of the cryptocurrency market. It remains to be seen how TUSD and other stablecoins will continue to fare in the cryptocurrency market as the industry continues to evolve.
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