TUSD Trumps BUSD in Supply Showdown Amid Binance Regulatory Fallout

For the first time since Binance’s $BUSD launch, TrustToken’s $TUSD has surpassed $BUSD’s market supply following recent regulatory setbacks.

According to data from September 5, $TUSD’s circulation now exceeds $BUSD’s $2.8 billion market cap. This crossover comes as $BUSD-issuer Paxos halted minting and Binance discontinued support amid pressure from U.S. authorities.

In the past three days alone, $TUSD’s supply grew nearly 15.6% to over $3.4 billion. Meanwhile, $BUSD’s valuation declined without Binance’s backing. Multiple factors contributed to $TUSD’s sudden rise. For one, Binance introduced new $TUSD trading pairs and staking options through its Launchpool program. This expanded the use case for Tether’s stablecoin.

$TUSD also benefited from $BUSD’s regulatory woes. Now $TUSD sits in the top stablecoin position on the world’s largest crypto exchange. The changing landscape illustrates how regulatory actions can significantly disrupt stablecoins’ market standing. $BUSD once held an advantage but lost ground rapidly due to its issuer’s legal scrutiny.

According to the current updated data from CoinGecko, $TUSD currently has a market cap of $3.4 billion, with $BUSD right behind with a $2.8 billion market cap. $TUSD is currently tradeable on 54 exchanges, while $BUSD is available on 107 exchanges. The data also shows that in the last 30 days, the market cap of $BUSD has plunged by 16.8%.

As rival $TUSD now surges, $BUSD faces an uphill battle to regain dominance. The situation exemplifies the fickle nature of stablecoin competition, dictated by external regulatory forces beyond each token’s control.