The stablecoin market, in specific, was recently assessed at a massive $180 billion in April 2022. It has recently started to buck against its uptrend mainly due to the fact that it is in the wake of the wider bearish phase that has struck the broader cryptocurrency industry. Recent developments, however, may indicate positive change as they reveal the supply of stablecoin to increase, with this possibly prompting renewed interest and investment in the cryptosphere. This resurgence is in line with the strong growth that the overall cryptocurrency market has experienced, with its total market capitalization increased by a solid 109% since the start of the year.
One of the major players in this resurgence is USDT, which has grown to further consolidate its dominance in the stablecoin market at the expense of USDC. Although the most vivid growth was observed in TrueUSD (TUSD). According to crypto trading experts, the Market share of TUSD has increased significantly by over 238% within a year – from 0.53% to 1.79%. That growth is also evident in the market capitalization of the coin, which shot up to a more solid $2.31 billion from $799.31 million. An awesome trajectory for TUSD further underlines its growing importance in the stablecoin sector.
Further evidence of the TUSD ascent is being given through the number of inflows and the market presence increasing. Meanwhile, the USDT has doubled up on its position, backed by its massive holdings in US Treasury bills amounting to $72.6 billion. Increased participation of big financial entities like PayPal offering its own PYUSD and Visa adopting USDC for settlements also means the growth of acceptance in stablecoins in mainstream finance. This trend really makes clear that traditional finance and decentralized finance (DeFi) are coming together and merging through stablecoins to develop as connecting tissue between these two financial worlds.
As for TrueUSD, it is a USD-pegged stablecoin known for transparent and live on-chain attestations of reserves done by independent third-party accounting firms. One of the important milestones for TUSD is the integration of this stablecoin in the Binance ecosystem with huge support to its adoption. TUSD is a cryptocurrency that plays a vital role on the Binance Launchpad, which provides an opportunity for traders to invest in the early issuance of a new emerging cryptocurrency. Also, its approval as a collateral currency for margin trading in Binance Futures and its presence in 44 TUSD spot trading pairs both seem to add more relevance to TUSD in the Binance trade operations.
In the bigger DeFi picture, TUSD so shows that it is flexible. It can be observed that it is combinable with decentralized trading platforms, for instance, PancakeSwap and Ellipsis, which implies it is versatile. Integration of Chainlink’s proof of reserves mechanism further strengthens the reliability and security of TUSD.
In this regard, TUSD impresses the competitive stablecoin market with high circulating supply and continued trading volume. It’s not as significant as the giants USDT and USDC, but its presence is not insignificant:
TUSD’s circulating supply exceeds 3 billion, ranking it fifth in the stablecoin sector.
Its trading volume over 24 hours exceeds 200 million, speaking volumes to its active trading, although it is ranked behind only USDT and USDC in this regard. TUSD is multi-chain, and it is flexible for any kind of usage on multiple platforms and DeFi applications.
TrueUSD has further doubled down on its adherence to transparency by integrating Chainlink’s Proof of Reserve (PoR) into its system, thus becoming the first USD stablecoin to have adopted the system. This, therefore, ensures a real-time process of verifying the off-chain USD reserves. The reserve data is all meticulously compiled by The Network Firm, LLP (TNF), an accounting firm based in the US with niche expertise in this industry. In what can be termed as a major leap towards globalization and increased transparency, TUSD has inked its partnership with Moore Hong Kong, with services of daily attestation being supported along with TNF. This partnership has a far-reaching significance in setting transparency standards within the stablecoin ecosystem.
With significant trading volumes of the TrueUSD ecosystem in key cryptocurrency exchanges, it signals growing adoption and trust of its traders. For instance, a zero-fee discount by Binance introduced for BTC/TUSD pair trading volumes has led to great volumes in trading TUSD. Further, the very presence of TUSD on exchanges like HTX, OKX, Bybit, and KuCoin made enough proof of its strong market base.
TUSD has wide distribution across networks due to its blockchain agnostic approach, and the highest number of TUSD tokens are recorded by TRON, while Ethereum and BNB Smart Chain come second and third among others. PancakeSwap and Curve Finance are evidence of its massive adoption in the DeFi space. Strategic partnerships have also played a role in the expansion of TrueUSD in terms of reach and utility. Collabs with IvendPay and Travala, for example, point to the fact that TUSD can be used both in retail and travel, therefore indicating the possibility for the token to show real life. For those who like to mint or redeem TUSD, the process is quite easy to perform through the TrueUSD web application. The user is able to conveniently set up their account, start their wire transfers, and mint or redeem TUSD, along with a thorough guideline given on the website.
On the front line, stablecoins are poised to herald a new dawn of innovation and increased scrutiny and regulation. As with most other stablecoins, TUSD will assume its shape in the middle of a deeply sensitive and shapeshifting landscape for the financial technology space. With its transparency and verification methods on reserves, TUSD will just be in time, positioned for the surging and more rapidly maturing stablecoin market.
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