TUSD surpasses Tether as Binance's largest Bitcoin pair

TUSD surpasses Tether as Binance's largest Bitcoin pair

TrueUSD (TUSD) has become the fifth-largest stablecoin by market cap after Binance began using the token as its dollar-pegged crypto of choice in late February.

Last week, the BTC/TUSD trading pair surpassed 50% of Binance's Bitcoin trading share, overtaking BTC/USDT.

Is TUSD Tether’s Next Rival?

According to one analysisby crypto market data provider Kaiko on Monday, BTC/TUSD became the largest Bitcoin market on Binance last week, after BTC/USDT enjoyed a period of overwhelming dominance just last month.

That happened quickly 👀

It took less than 1 month for BTC-TUSD to become the largest #BTC Market on Binance.

The fee-free pair surpassed and exceeded 50% market share for the first time last week $USDT. pic.twitter.com/A78COeMO7r

— Kaiko (@KaikoData) April 17, 2023

USDT was introduced by Tether back in 2014 as one of the first dollar-pegged stablecoins and remains the largest of these tokens by market capitalization today. Valued at over $80 billion as of April 2023, it maintains its peg to the dollarliquid reservesconsisting of cash and short-term U.S. Treasury bills.

USDT has gained significant ground on Binance against Circle’s USDC – one of its biggest competitorsreplacedthe latter cryptocurrency during its exchange with BUSD in September. Tether's market capitalization temporarily continued to benefit after USDCdecoupledfrom the dollar amid the Silicon Valley Bank crisis in March.

However, things took a turn when the BUSD issuer was Paxosforcedfrom U.S. regulators to begin winding down operations in February. Looking for ways to move away from BUSD dependence, Binance started quicklyEmbossingtens of millions of dollars in TUSD. From April 17th TUSDMarket capitalizationis over $2 billion, compared to around $966 million as of February 27.

TrueUSD operates similarly to Tether, holding over $2.15 billion in bank reserves to back its token. In a relationship with Chainlink, the company uses real-timeProof of reservesSystem to cryptographically verify that its stablecoin is fully secured at all times.

The switch from Binance to TUSD

By the end of March, Binance hadaddeda variety of new TUSD trading pairs including LDO/TUSD, MATIC/TUSD, OP/TUSD, SOL/TUSD, SSV/TUSD and XRP/TUSD. It also made TUSD the only stablecoin to inherit its zero-fee BTC trading fee policy after March 22 – the exact point at which BTC/TUSD volume on Binance began overtaking other Bitcoin pairs.

TrueUSD's 24-hour total volume is $226 million on April 17. Meanwhile, USDT’s daily volume of $31.5 billion is higher than that of any other cryptocurrency.

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