The market capitalization of stablecoin TrueUSD (TUSD) has doubled in three weeks on the back of support from leading crypto exchanges. By data CoinGecko, on February 22, the supply of the token was almost $970 million, and on February 15 it exceeded $2.03 billion. Daily trading volume during this time increased by 24%, from $58.3 million to $72.6 million, writes RBC Crypto.
TrueUSD is a stablecoin created by the TrueFi DeFi protocol team and running on the Ethereum, TRON, and BNB Smart Chain (BSC) blockchains. The tokens are issued by the TrustToken platform and the fiat reserves are held in escrow accounts held by several unrelated licensed trust companies. TUSD are issued in an amount equal to the amount of US dollars received on the deposit accounts. When redeemed, tokens are burned.
From October 7, the token is in the TRC-20 standard (TRON network) recognized official tender in the Commonwealth of Dominica. According to CoinGecko, on March 15, the stablecoin ranked fifth in this category of cryptocurrencies by market capitalization, behind Tether (USDT), USD Coin (USDC), Binance USD (BUSD) and Dai (DAI).
Major crypto exchanges have begun to support the stablecoin and introduce zero commissions for trading TUSD in pairs with leading cryptocurrencies. So, Huobi March 13 announced on the introduction of trading fees of 0% for trading Bitcoin, Ethereum and Tron (TRX) against TUSD for the period from March 14 to June 30.
Binance Exchange March 11 announced TUSD support by adding trading pairs with TUSD to Bitcoin, Ethereum, BNB and USDT to the platform. The exchange has introduced zero commissions on all these pairs for makers, as well as for takers in BNB/TUSD and ETH/TUSD pairs. According to CoinMarketCap, by March 15, the share of daily trading volume on Binance for the TUSD token exceeded 23%.
March 15 Binance announcedthat zero commission in trading pairs with bitcoin will only apply to the TUSD token. The promotion will start on March 22.
The price of the native TrueFi token (TRU) of the TrueFi ecosystem reacted with a sharp increase to the announcement of Binance, increasing by 27% in the moment, from $0.11 to $0.14. However, it immediately rolled back to $0.11.
Capitalization and trading volumes of TUSD are growing amid difficulties faced by other leading stablecoins, BUSD and USDC. The release of new Binance USD coins was banned by US regulators on February 13, after which its supply was almost halved, from $16.1 billion to $8.3 billion. And USDC lost its peg to the US dollar and dropped to $0.87 after the news about closing of Silicon Valley Bank (SVB) on March 11. Since then, its capitalization has decreased by 8.7%, from $42.1 billion to $38.4 billion.
Source: Cryptocurrency
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