In a remarkable turn of events, TrueUSD (TUSD), the stablecoin chosen by Binance as an alternative to BUSD, has witnessed exponential growth, surpassing $3 billion in circulation. Recent data from DeFiLlama reveals that Binance holds an astonishing 90% share of the TUSD market. This domination is further corroborated by cryptocurrency research firm Kaiko, which noted that TUSD’s trading volume is almost entirely concentrated on Binance.
Following the sanctions imposed on Binance’s stablecoin, BUSD, by US regulators, the cryptocurrency exchange giant turned to TrueUSD as its new alternative. Binance responded by removing pending order fees for all TUSD spot and margin transactions, while also issuing a substantial amount of TUSD.
CoinGeko’s data for June 2023 demonstrates TUSD’s meteoric rise, with its circulation exceeding $3 billion and approaching the market cap of BUSD. This achievement has propelled TUSD to become the fifth-largest stablecoin in the cryptocurrency market. Notably, TUSD has experienced a staggering 200% increase in circulation this year, making it the sole stablecoin to witness such substantial growth in the midst of the bear market.
The dominance of Binance in the TUSD market is evident, with DeFiLlama’s data indicating that the exchange now holds approximately $2.7 billion, representing around 90% of the total TUSD supply. Kaiko’s report further highlights the concentration of TUSD’s trading volume on Binance, with the exchange reporting a daily trading volume of $2 billion compared to a mere $2 million on decentralized exchanges during the second quarter of 2023.
The recent surge in TUSD’s popularity has led to questions and speculation within the cryptocurrency community. Notably, cryptocurrency researcher Adam Cochran, affiliated with Sinemhain, raised concerns regarding TUSD’s ownership. Cochran took to Twitter to claim that “TUSD was privately issued by Justin Sun through a paper company, and Binance allowed 90% TVL collateral.”
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