Significant rise in TUSD trading volumes and supplies due to Binance's decisions

Since the beginning of this year, the stablecoin market has witnessed several crises caused by regulatory interventions. While the market is trying to deal with these challenges, the TrueUSD stablecoin has seen a significant rise in trading volume. According to CoinGecko cryptocurrency price tracking data. This success is largely due to the fact that the stablecoin is supported by the Binance trading platform and offers a discount on its zero-fee use for buying and selling Bitcoin (BTC).

TrueUSD's daily trading volume exceeded nearly $1 billion this past Thursday and Friday, according to CoinGecko data. This is a significant increase from the previous period of this month. TrueUSD recorded a trading volume of less than $100 million per day.

TrueUSD's success comes after it selected Binance, the world's largest cryptocurrency exchange. The currency as a trading pair is a preferred stablecoin on its platform. After New York state regulators issued an order earlier this year preventing the issuance of Binance USD (BUSD) by specialized financial firm Paxos.

While Binance has supported the BUSD coin through a promotional campaign with zero-fee trading when used to trade on its platform. With the aim of eliminating competing stablecoins, including TrueUSD.

After New York regulators decided to stop issuing BUSD, Binance brought TrueUSD back to its platform in early March. The coin also granted the exclusive discount that its official stablecoin had for zero-fee trading on the Bitcoin (BTC) and TrueUSD trading pair starting March 22.

Binance expanded its free-to-fee TrueUSD trading discount this week to several popular cryptocurrencies. Such as solana (SOL), optimism (OP), polygon (MATIC), and XRP.

In a report by Clara Medaly, Head of Research at cryptocurrency markets data provider Kaiko. It said that Binance has chosen TrueUSD as a possible successor stablecoin to its primary stablecoin, BUSD.

Other stablecoins are declining and TUSD is rising

This rapid increase in growth highlights a major reshaping of the $132 billion stablecoin market, which is suffering from constant regulatory interventions and a banking crisis.

TrueUSD's market capitalization and the supply of its circulating supply have increased. From less than $800 million at the beginning of January to $2 billion at the moment. making it the third largest stablecoin in the world.

On the other hand, the number of TrueUSD coins in circulation rose to 2.02 billion from 1.32 billion on March 11, which indicates an increase of 53%. The number of TUSD coins issued on the Ethereum network has increased from 558.28 million to 711.71 million in the past 33 days. While the number of TUSD coins issued by the Tron network increased from 409.64 million coins to 1.30 billion coins, an increase of more than 218%.

On the other hand, in the same period, the supply of many stablecoins saw a decline. Such as Circle USDC, Binance Coin (BUSD), Gemini Dollar (GUSD) and USDD Coin.

Gemini's aunt GUSD led the declines by 30.5% over the past 30 days. The supply of BUSD coins decreased by 30.1%.

USDC is the second largest stable digital currency in terms of market capitalization and supply volume after USDT. It suffered a strong setback after it lost its peg to the US dollar and its value fell to $0.87 on March 11th.

Because a large portion of Circle's reserves were located in the collapsed Silicon Valley SVB. Before the US Federal Reserve intervened to save the money of depositors at Silicon Valley Bank in California (SVB) and Signature Bank in New York. And the currency recovers.

It is noticeable that the number of TUSD coins issued on the Binance network has decreased significantly. There were a total of 911,869 TUSD issued on the Binance Chain, and now there are 145,516 TUSD on the Binance Chain, a decrease of 84.04%.

TrueUSD was initially issued on the Ethereum network as an ERC-20 token. But digital currency support has been extended to other networks as well. Such as Binance Chain, Tron Network, and Avalanche Network.

TrueUSD is one of the stablecoins that relies on decentralized technology and allows users to quickly and easily trade in various financial markets. without exposing them to the large fluctuations that may occur in the traditional markets. And with further support from Binance and other trading platforms. The market capitalization of this stablecoin is expected to continue to rise in the near future.