Latest update on Binance has it that the TrueUSD (TUSD) stablecoin has surpassed the Binance USD (BUSD) in terms of supply. TUSD’s market cap has increased to almost $3.4 billion due to an astonishing 15.6% rise in supply in just three days.
The legal attention surrounding BUSD’s issuer, Binance, has sharply decreased the stablecoin’s value in recent weeks. It has also been said that the TUSD has risen to the #1 position on Binance due to this regulatory impact. TUSD’s supply has increased by an astonishing 15.6% in the last three days alone, securing its status as the leading stablecoin. It overtook BUSD at a current market cap of $3.4 billion, now at $2.8 billion.
Analyzing the trend, Vignesh Karunanidhi, a cryptocurrency journalist with Coin Edition, commented that this abrupt change in the stablecoin market underscores the rising worries about regulatory compliance in the cryptocurrency sector. It was also gathered that BUSD has seen a sharp reduction in market cap, with data showing a 16.8% drop over the past 30 days.
Investigation into the past activities revealed that since Paxos, the owner of BUSD, stopped issuing new tokens, Tether’s TrueUSD has taken the top rank in supply for the first time. More analysis shows that the rise in TUSD demand amid the ongoing regulatory uncertainty can be ascribed to a move to intentionally increase currency supply.
TUSD’s High-Performance Explained, 1:1 Peg With Fiat Currencies Blamed
Karunanidhi has explained that the TUSD and other stablecoins have grown in popularity because of their capacity to uphold a 1:1 peg with conventional currencies, offering some stability in the digital assets sector. Recent data updates from CoinGecko reveal that TUSD market capitalization has reached $3.4 billion (as of press time), while BUSD slags with $2.8 billion in recent market capitalization.
Data comparison shows that TUSD is also currently traded on 54 cryptocurrency exchanges worldwide, compared to 107 exchanges trading the BUSD. However, latest report said that the BUSD market capitalization plunged 16.8% in the last 30 days.
Another analyst, with the monika “CRYPTO DOMINIUM,” wrote that Stablecoins like TUSD are positioned to play a crucial role in offering a safe harbor for investors seeking stability and dependability as the cryptocurrency industry navigates a constantly shifting regulatory landscape. He added that the rapid rise of TUSD to the top of Binance’s stablecoin hierarchy is evidence of the market’s need for reliability and stability in these turbulent times.
Meanwhile, Binance, two days ago, said on its official blog that they are currently controlling about 2.782 billion TUSD, as well as 99.44% of FDUSD global supply. Official data from the Binance blog also shows that “those stablecoins made up $24.764 billion of the entire Binance’s cryptocurrency reserve of $56.04 billion.” The report said.