TrueUSD becomes fifth largest stablecoin
TrueUSD has become the fifth largest stablecoin after Binance minted about $130 million TUSD in the past seven days.
According to blockchain data by Coingecko, the recent crackdown on BUSD by the Securities and Exchange Commission (SEC) saw its utility within the giant crypto exchange plummet. BUSD market capitalization declined by 32.6% since the release of the SEC Wells notice. This decline began from a steady high of about $16 billion to about $10 billion today, translating to a $6 billion loss in market cap.
As a result, Binance turned to TrueUSD increasing its use within the ecosystem. The suddenly increased utility drove TUSD market capitalization to a six-month high of $1.12 billion, converting it to the fifth largest stablecoin. TUSD is now behind USDT (the market leader), USDC, BUSD and DAI.
The 18.3% growth of TrueUSD within the past week resulted from a sharp rally begun on Feb. 27 at about $967 million to today’s high of $1.12 billion. In the process, it toppled Frax Finance’s native stablecoin FRAX.
Apart from TUSD, tether (USDT) has also seen significant growth in the past month. USDT grew by 5%, translating to more than $2 billion in market cap gains since Feb. 14.
After the SEC issued a Wells notice to Paxos, the issuer of BUSD, on Feb. 13, bearish sentiment regarding the stablecoin clouded the crypto community. The blow was quickly followed by another when the New York Department of Financial Services (NYDFS), the regulator of Paxos, ordered the issuer to stop issuing more BUSD.
The BUSD decline since then led to the growth of USDT and TUSD. In addition, the USDC, declining since the beginning of the month, made a U-turn and gained about a billion dollars.