Key Point
- TUSD’s market cap surged to $3.11 billion on July 16, 2023, from $2.04 billion the previous day.
- The supplies of three major stablecoins dropped by 4% to 19% in comparison to the previous month.
- TUSD received a $1 billion injection, leading to a surge in its supply despite the decline in stablecoins due to substantial redemptions
The stablecoin market has been facing some tough times lately, with several major projects experiencing a decline in supply due to redemptions. However, amidst this challenging environment, TUSD has emerged as a standout performer. The token has recorded a significant surge in its supply, with more than a billion dollars’ worth of new tokens added to its existing pool.
TUSD’s supply spiked by a whopping 52% on June 16, marking a remarkable achievement for the project. As of today, the market capitalization of TUSD stands at a staggering $3.13 billion, making it one of the top-performing stablecoins in the market.
This news comes at a time when the overall stablecoin market has been struggling to maintain its valuation, with redemptions causing the market capitalization to plummet to its lowest point in 20 months. Despite these challenges, the collective market capitalization of the leading stablecoins currently stands at $129.99 billion, with a global trade volume of $20.84 billion in the past 24 hours.
Stablecoins Gaming Momentum
In the world of cryptocurrencies, stablecoins have been gaining popularity due to their stability and ability to maintain a peg to a fiat currency. Notably, three of the top five stablecoins in terms of market capitalization – USDC, DAI, and BUSD – have recently experienced supply reductions ranging from 3.8% to 22% over the past 30 days. This decrease in supply could potentially lead to increased demand and a rise in value.
However, TUSD, on the other hand, has witnessed a supply increase of about 53.5% over the past month, a remarkable feat in the world of stablecoins. This surge in market valuation on July 16, 2023, reaching $3.11 billion, was a substantial jump from the previous day’s $2.04 billion, making it a noteworthy achievement for TUSD.
TUSD on High Hourses
It’s interesting to note that while TUSD grew by 53.5% within 30 days, a single day, last Friday, accounted for 52% of that increase. According to the smart contract data on Etherscan, the circulating supply of TUSD tokens on June 19 is approximately 3,135,633,460. This increase in supply could potentially lead to increased stability and trust in TUSD, further establishing it as a reliable stablecoin in the market.
Furthermore, despite there being over 52,000 TrueUSD (TUSD) holders, a mere ten wallets hold control over 80% of the circulating supply. Out of these top ten wallets, Binance reigns supreme as the largest holder with a whopping 389,561,743 TUSD tokens in its leading address. In fact, Binance controls five of the top ten addresses with the highest TUSD holdings.
As a crypto exchange with substantial trade volume, Binance also boasts several other wallets that hold significant amounts of TUSD. One of these wallets contains 45,233,811 TUSD, while another holds precisely 28,000,000 TUSD. Additionally, Binance has two more wallets with holdings of 10,601,602 and 10,270,001 TUSD, respectively.
Interestingly enough, it’s not just crypto exchanges that are showing a keen interest in TUSD. The decentralized finance (defi) protocol Aave has also locked up a significant amount of TUSD. In fact, Aave has locked 4,780,182 TUSD for its aTUSD tokens. It remains to be seen how TUSD’s distribution will change in the future, but for now, these top wallets are holding the lion’s share.
Possible Reasons behind this Surge
Nansen.ai has released statistics that reveal Binance’s TUSD stash accounts for over 5% of the exchange’s massive $52.45 billion portfolio. TUSD, an ERC20-based stablecoin, was launched in 2018 via the Trust Token platform. The creators of TUSD claim that it is completely backed by US dollars and monitored by a regulated entity.
To further bolster their reputation, the stablecoin company teamed up with Prime Trust, a custodian that Bitgo plans to purchase. However, TUSD’s Twitter account recently revealed that “TUSD mints via Prime Trust are paused” until further notice.
As of Monday, the company has confirmed that mints through Prime Trust are still unavailable. These developments have raised questions about the future of TUSD and its role in Binance’s portfolio.
Furthermore, the company tweeted in the post, “In view of the uncertainty, minting through Prime Trust is still temporarily paused while minting/redemption through our other banking partners are unaffected. We will resume the Prime Trust process when the circumstances improve. Thanks for your patience.”
In view of the uncertainty, minting through Prime Trust is still temporarily paused while minting/redemption through our other banking partners are unaffected.
We will resume Prime Trust process when the circumstances improve. Thanks for your patience. https://t.co/N3RwvLGPon
— TrueUSD (@tusdio) June 19, 2023
End Note
As the stablecoin market continues to evolve and adapt to changing market conditions, TUSD’s remarkable success serves as a testament to the resilience of the overall ecosystem. With the project continuing to gain momentum and attract new users, it will be interesting to see how it performs in the coming months and years.
