• TUSD has become the fifth largest stablecoin by market cap after Binance began using the token as its dollar-pegged crypto of choice in late February.
• Last week, the BTC/TUSD trading pair surpassed 50% of Binance’s Bitcoin trading share, overtaking BTC/USDT.
• USDT was launched by Tether back in 2014 and remains the largest such token by market cap today.
TUSD Emerges As Fifth Largest Stablecoin
TrueUSD (TUSD) has emerged as the fifth largest stablecoin by market cap after Binance began using the token as its dollar-pegged crypto of choice in late February.
BTC/TUSD Trading Pair Surpasses BTC/USDT
Last week, the BTC/TUSD trading pair surpassed 50% of Binance’s Bitcoin trading share, overtaking BTC/USDT.
USDT Dominance
USDT was launched by Tether back in 2014 as one of the first-dollar-pegged stablecoins, and remains the largest of such tokens by market cap today. Capturing over $80 billion in value as of April 2023, it maintains its peg to the dollar using liquid reserves comprised of both cash and short-term US Treasury bills.
Binance Replaces USDC With BUSD
USDT gained significant ground against Circle’s USDC – one of its largest competitors – when Binance replaced the latter cryptocurrency at its exchange with BUSD in September. Tether’s market cap benefitted further after USDC temporarily depegged from the dollar amid Silicon Valley Bank crisis in March.
Binance Halts Fees On TUSB Trading Pair
However, things took a turn when Binance stopped charging fees on trading pairs involving TUSB this month. The move triggered a rapid migration towards this asset class by traders seeking neutral exposure to USD without relying on tether’s increasingly controversial model for maintaining liquidity reserves