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Binance’s TrueUSD Trading Volume Skyrockets Overtaking Bitcoin as Fees Impact Other Pairs

In a surprising turn of events, Binance’s TrueUSD (TUSD) trading pair has risen to prominence, surpassing Bitcoin (BTC) trading volume on the platform. In addition, the recent reinstatement of fees for other pairs has led to a significant shift in trading volume, with the BUSD-TUSD pair now accounting for 50% of all BTC trading. This article explores the factors behind this development and examines the implications for the crypto market.

Binance’s TrueUSD Trading Volume Soars

According to research by Kaiko, Binance’s BTC-TUSD trading volume surged to $60 million per hour shortly after the exchange reintroduced fees for other trading pairs in late March. This shift in trading behavior resulted in BTC trading volumes reminiscent of a bear market, as traders flocked to the TUSD trading pair.

Despite these impressive gains, TUSD still lags behind BUSD and Tether (USDT), which collectively make up 90% of trading volume on centralized exchanges. However, it is anticipated that TUSD will eventually overtake BUSD, following a recent directive from a New York prudential regulator ordering Paxos, the BUSD issuer, to cease minting the coin.

The Appeal of TrueUSD: A Stablecoin Alternative

TrueUSD is a stablecoin designed to track the value of a fiat currency, such as the US dollar. Crypto traders often utilize stablecoins to move in and out of trading positions more quickly than with fiat currencies.

Its website states that TrueUSD is “the first independently-verified digital asset redeemable 1-for-1 for U.S. dollars.” The stablecoin operates natively on Ethereum, BNB Smart Chain, TRON, Avalanche, and BNB Beacon Chain. A real-time snapshot of TrueUSD’s reserves indicates over $2 billion backing all minted coins, although the exact composition of these reserves remains unclear. In 2020, Singapore-based Techteryx Ltd acquired the intellectual property for TrueUSD from Archblock.

The Commonwealth of Dominica authorized TrueUSD as a digital currency and medium of exchange in October 2022, further solidifying its standing in the crypto market. This development sets TrueUSD apart from its competitors, as other stablecoins face increasing regulatory scrutiny.

One such competitor, Tether, recently announced that it would no longer use commercial paper for its USDT reserves, highlighting the ongoing efforts to comply with regulatory requirements.

The Rise of TrueUSD and Its Impact on Crypto Trading

The surge in Binance’s TrueUSD trading volume demonstrates the potential for stablecoins to play a pivotal role in the crypto market. As fees impact other trading pairs, traders increasingly turn to TUSD as an alternative. 

With its regulatory approval and growing prominence, TrueUSD is poised to become a significant player in cryptocurrency trading, potentially reshaping the landscape for years.

The post Binance’s TrueUSD Trading Volume Skyrockets Overtaking Bitcoin as Fees Impact Other Pairs appeared first on CryptoMode.

Jerry Rolon

After working for 7 years as a Internet Marketer, Jerry now aims to explore the journalistic side of Internet. With his impeccable knowledge in this domain, he churns out some of the best news articles from the internet niche. With respect to acedamics, Jerry earned a degree in business from California State University.

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