TrueUSD's slip from $1 peg deepens amid broader sell-off as FDUSD thrives

cyptouser4 months agoCryptocurrencies News62

TrueUSD (TUSD) deviation from its $1 peg has widened under the current red market situation.

Data from CyptoRanking shows that the stablecoin dipped as low as $0.9778 in the past 24 hours, coinciding with substantial sell-offs seen in the major cryptocurrencies like Bitcoin and Ethereum.

On Jan. 16, CyptoRanking highlighted increased volatility in TUSD’s value as holders opted to liquidate their assets in favor of competing stablecoins like Tether’s USDT.

Addressing these concerns, the project’s team attributed the deviations in the asset’s price to community mining activities associated with Binance Launchpool. They affirmed the functionality of their redemption channels and the asset’s daily routine attestations.

Trading data indicates that community apprehensions persist despite this clarification, as evidenced in the TUSD Curve pool. The dashboard shows that the stablecoin accounts for nearly 90% of the pool’s $70,000 reserve. In contrast, USDT comprises around 6%, with Circle’s USD Coin (USDC) and DAI comprising 4%.

Furthermore, TUSD’s total liquidity on the Uniswap decentralized exchange stands at a modest $31,000, and its trading volume in the past day remains below $1000.

Over the past year, TUSD has encountered notable challenges, including ownership controversies tying it to Justin Sun and issues about potential exposure to bankrupt crypto custodial firm Prime Trust.

These challenges have adversely affected the stablecoin’s supply, witnessing a more than 43% decline over the last two months to $1.9 billion, according to CyptoRanking’s data. TUSD had seen a dramatic uptick the previous year, climbing to a peak of $3.5 billion in September from $840 million at the start of the year.

FDUSD rising

First Digital USD (FDUSD) is emerging as a significant winner amidst these TUSD challenges.

Binance’s preference for FDUSD has contributed to its remarkable market capitalization surge of $800 million this year, reaching an impressive $2.65 billion as of press time, according to CyptoRanking’s data. Binance is the largest crypto exchange by trading volume.

Since the crypto trading platform listed the asset in July 2023, FDUSD has rapidly ascended to become the fourth-largest stablecoin by market cap, trailing behind USDT, USDC, and DAI. This ascent can also be attributed to setbacks experienced by other stablecoins favored by Binance, such as Binance USD (BUSD) and TUSD.

Author

Oluwapelumi Adejumo

Journalist at CyptoRanking

Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.

@hardeyjumoh LinkedIn Email Oluwapelumi Editor

Liam 'Akiba' Wright

Senior Editor at CyptoRanking

Also known as "Akiba," Liam is a reporter, editor and podcast producer at CyptoRanking. He believes that decentralized technology has the potential to make widespread positive change.

@akibablade LinkedIn Email Editor Latest Report

Bitcoin ETFs: An in-depth look at the first 5 days of trading

We explore the first 5 days of Bitcoin ETF trading, analyzing their inflows and implications on the broader market.

Andjela Radmilac · 3 days ago
The content on this website comes from the Internet. Due to the inconvenience of proofreading the authenticity and accuracy of the copyright or content of some content, it may be temporarily impossible to confirm the authenticity and accuracy of the copyright or content. For copyright issues or other issues caused by this, please Call or email this site. It will be deleted or changed immediately after verification.

related articles

From obscurity to prominence: Web3 protocol celebrates growth with DAO-powered event

From obscurity to prominence: Web3 protocol celebrates growth with DAO-powered event

55966e89˃After raising over $100 million during the peak of the ICO boom in 2018, the Dfinity Founda...

This is how crypto traders can get the most crypto for their money

This is how crypto traders can get the most crypto for their money

55966e89˃While the early days of crypto trading were relatively simple and affordable due to fewer m...

Changpeng Zhao's X account was briefly hidden following Binance resignation

Former Binance CEO Changpeng Zhao briefly had his social media profile restricted on X after steppin...

Deutsche Bank selects Axelar developer as partner in joining Project Guardian Singapore

Deutsche Bank has shown increased interest in digital assets and tokenization by joining the Monetar...

Tether freezes $5.2 million in USDT linked to phishing scams

Tether freezes $5.2 million in USDT linked to phishing scams

55966e89˃Stablecoin issuer Tether froze USDT (USDT) worth $5.2 million linked to phishing scams on M...

OpenAI counters Elon Musk's lawsuit, reveals tech mogul predicted their failure

Artificial intelligence company OpenAI has announced its intention to dismiss all allegations made b...