TrueUSD’s Bitcoin trading volume nears links on Binance but traders are hesitant to use the token

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TrueUSD (TUSD) stablecoin market share in bitcoin (BTC) trading volume on Binance is catching up with Tethers USDT following fee-free exchange discount, but data shows traders are still reluctant to use TUSD, according to crypto data firm Kaiko.

Between the Binances BTC-TUSD and BTC-USDT trading pairs, TUSD’s market share increased to 49%, nearly matching that of Tether.

This is a massive increase in just a few weeks, said Clara Medalie, head of research at Kaiko.

However, the growth in TUSD could not compensate for the rapid decline in trading volume of BTC-USDT pairs after Binance waived its fee-free rebate for Tether, according to data from Kaiko. Additionally, larger buy and sell orders are still being placed for the USDT pair, according to Kaiko. This suggests that traders are still hesitant to use TUSD despite the lack of fees, Medalie added.

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The rise in TUSD came as Binance, the world’s largest crypto exchange by trading volume, chose the token as the successor to its favorite stablecoin Binance USD (BUSD) issued by Paxos Trust.

The exchange resumed trading with TUSD after a six-month hiatus following Paxos’ decision to cease issuing BUSD and assigned its fee-free trading discount to the BTC-TUSD pair and waived the promotion of BUSD and USDT from March 22.

The $132 billion stablecoin market is undergoing a major upheaval resulting from a regulatory crackdown and a banking crisis in the United States. third largest stablecoin with a market capitalization of $16 billion. Last month, the collapse of the crypto-friendly Silicon Valley Bank, reserve partner of the second-largest stablecoin USDC, sent shockwaves through the market. In the aftermath, USDC suffered over $10 billion in outflows.

Tethers USDT and TUSD emerged victorious from the crisis. TUSD has become the fifth largest crypto market with a market capitalization of $2 billion. The circulating supply of USDT has increased by $10 billion over the past few months and is approaching its all-time high.

Stablecoins are a crucial part of the crypto ecosystem, facilitating trading on exchanges and serving as a bridge between government-issued fiat currency and digital assets.

TUSD is a dollar-pegged stablecoin issued by crypto company ArchBlock, formerly known as TrustToken. Its value is fully backed by fiat assets, according to blockchain data provider ChainLinks’ proof of reserve monitoring tool. In 2020, a little-known Asian conglomerate, Techteryx, acquired the intellectual property rights to TUSD, TrustToken said at the time.

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