FDUSD stablecoin expands to Sui blockchain, hits $3b market cap

First Digital Trust’s stablecoin, FDUSD, is expanding to the Sui network after previous expansions to Ethereum and BNB Chain.

The stablecoin currently has a market cap of over $3 billion. Since its introduction last year, the Hong Kong-based FDUSD has risen to become the fourth-largest stablecoin in the market.

A promotional campaign by Binance significantly influenced this surge in popularity and usage.

The Sui expansion came after New York’s state regulators mandated the cessation of the Paxos-issued Binance USD stablecoin, catapulting FDUSD’s trading volume to exceed $10 billion in the past day.

Increased volume is primarily attributed to trades pairing FDUSD with bitcoin, ether, and USDT on the Binance platform. Data from CoinGecko highlights that over 90% of this trading activity involves these specific pairings.

The Sui blockchain has also recently witnessed a significant uptick in defi activities. According to DefiLlama, the total value locked (TVL) in the Sui network, which indicates the overall value of assets held within its ecosystem, has surged from $100 million to approximately $700 million within the last six months.

By integrating FDUSD into the Sui network, First Digital Trust pioneers the issuance of a leading stablecoin on this network. The launch also addresses the inefficiencies associated with transferring stablecoins like USDC and USDT from other blockchains to Sui, which previously required users to incur additional fees and face potential risks associated with using bridges for such transfers.