TrueUSD (TUSD) Stablecoin Depegs to $1.20 on Binance Amid High Demand

TrueUSD (TUSD), an ERC-20 stablecoin pegged to the U.S. dollar, depegged to over $1.20 on Binance on May 1, before returning to its peg. Analysts speculate that high demand due to an SUI farming pool on Binance caused the de-pegging. Kaiko reported that users on Aave and Compound began borrowing large amounts of TUSD, shorting it by swapping for USDC. TUSD is now the fifth-largest stablecoin, with a market cap of $2.5 billion, up 20% over the past week. The stablecoin market has had an eventful 2023, with the aggregate supply of the top five stablecoins dropping by around 23% this year.