TrueUSD became the leader in trading paired with Bitcoin

Stablecoin TrueUSD (TUSD), which was little known until this year, now represents the largest asset in terms of trading volume on centralized exchanges paired with bitcoin due to its promotion by the Binance exchange, according to a report by analytics firm Kaiko. RBC Crypto writes about this.

In the last couple of years, Bitcoin trading pairs in USDT and BUSD have had the largest share of trading volumes. They have both been using the zero fee program on Binance since mid-2022. At the end of March, the leading crypto exchange returned previously canceled fees for trading bitcoins, but made an exception for the BTC/TUSD pair.

This stimulated demand for this trading pair. Its share of trading volume on Binance rose to 50% from almost 0% in just a month since the introduction of zero fees, the report says. This decision had a radical impact on the entire crypto market – the BTC / TUSD trading pair became the largest bitcoin pair on centralized exchanges.

“As long as zero-fee BTC/TUSD trading continues, TUSD should be seen as the leading stablecoin, whether people like it or not. Similar to BUSD in the past, TUSD is now the reason for the increase in trading volumes, even if the reasons why Binance gave TUSD this gift are unclear,” the analysts write.

TrueUSD is the fifth largest stablecoin with a market capitalization of $2.03 billion. According to CoinGecko, this figure was about $756 million at the beginning of the year (an increase of 168%). The stablecoin was created by the TrueFi DeFi protocol team and runs on the Ethereum, TRON, and BNB Smart Chain (BSC) blockchains. The token was issued by the TrustToken platform, but it is now assumed that the founder of the TRON blockchain and the head of the Huobi exchange, Justin Sun, is now related to it.

The official TUSD website states that the token is associated with the TrustToken team. But back in 2020, its head Rafael Kosman announced that the project was sold to the Asian company Techteryx, which works with the TRON blockchain.

TrueUSD issuance rose after U.S. regulators ordered Paxos, the issuer of Binance BUSD-branded stablecoin, to stop issuing new tokens in February.

The largest stablecoin by capitalization, Tether (USDT), meanwhile remains the leader in terms of total trading volume (including Bitcoin and other cryptocurrencies). According to Kaiko, USDT pairs account for 80% of the total trading volume on centralized crypto exchanges. The share of TrueUSD is 9% and in the coming months it may take second place, analysts say.

They note that despite the fact that the total trading volumes on Binance have fallen, the policy of the leading crypto exchange, including in relation to stablecoins, has a significant impact on the entire market. “If anyone doubted the influence of Binance on the market, then not now,” the conclusion says.


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