beincrypto.com
TrueUSD ($TUSD) recently announced a market cap of $3.4 billion, surpassing Binance USD ($BUSD) for the first time.
This landmark event comes on the heels of Binance’s decision to phase out its support for $BUSD—a move spurred by US regulatory pressures.
$TUSD Overtakes $BUSD Amid Regulatory Showdown
Binance, the behemoth in global cryptocurrency trade volume, discontinued its support for $BUSD after the token’s issuer, Paxos, stopped minting new tokens. Regulatory heat from US authorities prompted Paxos to halt production, compelling Binance to revisit its portfolio strategy.
This announcement marked a watershed moment, degrading $BUSD’s market valuation to just below $3 billion, according to Etherscan data from September 3, 2023.
Meanwhile, $TUSD — once considered a lesser rival to $BUSD — saw its fortunes soar. Within a three-day span, $TUSD’s supply swelled from 2.9 billion to 3.438 billion, representing a remarkable 18.55% growth.
Factors That Helped Boost $TUSD
Several factors appear to have contributed to $TUSD’s sudden ascendancy, many of which pertain to Binance’s changing tactics.
For example, Binance recently launched two projects, Sei and CyberConnect, on its Launchpool platform. There, users can stake their $TUSD to farm new tokens. The crypto exchange also introduced new pairs CYBER/$TUSD and SEI/$TUSD, embedding $TUSD into its ecosystem.
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Furthermore, $TUSD became accessible via the crypto payment gateway Alchemy Pay, extending its reach to 173 countries. These maneuvers reveal how deeply integrated $TUSD has become with Binance, even as the latter pivots away from its own stablecoin, $BUSD.
According to data analytics firm Nansen, Binance holds over 5% of the $TUSD supply and manages an astonishing $17 billion worth of Tether (USDT). These holdings show Binance’s strategic flexibility as it navigates regulatory scrutiny and market competition.
$TUSD also focused on amplifying its user experience, a key strategy in capturing a larger market share. Launching a new domain and a redesigned website aims to offer a seamless user experience.
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Within the broader stablecoin ecosystem, $TUSD’s surge illustrates the fluid dynamics of a marketplace conditioned by regulatory realities and strategic business decisions.
$TUSD took advantage of an opportune moment to grow its market share. However, its rise also underscores the precariousness of crypto, where market positions can shift dramatically in a matter of days.