Moving away from BUSD, Binance has started sending many waves to the industry with its new stablecoin agreement. The new stablecoin, which has just debuted, has left all milestones in value in a short time.
Altcoin market prepares for a new Binance-backed stablecoin
After BUSD, Binance started working with Hong Kong-based trust company First Digital USD (FDUSD). The new stablecoin has risen 51% over the past 30 days, approaching a market cap of $394 million. With this rise, FDUSD has risen to the eleventh position among dollar-based stablecoins, according to CoinGecko data.
Hong Kong-based First Digital Group launched FDUSD in June of this year. The stablecoin was listed on Binance, the world’s largest centralized exchange, right after its release. Binance’s support played an important role in FDUSD adoption. The leading exchange listed FDUSD on July 26. Meanwhile, it has removed transaction fees for conversions with other stablecoins, USDT and TUSD.
As we have reported as Kriptokoin.com, Binance has decided to end its support for BUSD, which is widely used on its platform. He announced that he would prefer FDUSD instead. Binance will stop using BUSD in investment products such as “Auto Invest” from September 15. Also, it will automatically favor FDUSD. Meanwhile, Binance is offering a 6 percent annual return on FDUSD deposits through its Simple Earn product during a two-week promotional period until September 15.
The increase of FDUSD is especially supported by Binance. As such, its adoption in the crypto and DeFi sectors is still limited. Data from Nansen shows that most of the FDUSD holdings are concentrated on the Binance platform. According to the report, there are almost no assets in the DeFi space. Nansen analyst Martin Lee said, “FDUSD is mostly on Binance for now. It does not have a very limited presence in DeFi or any other Blockchain application,” he says, noting that FDUSD is not in a truly exciting phase yet.
FDUSD opens to new trading pairs
Later, Binance announced that it has added support for First Digital USD (FDUSD) stablecoin trading pairs. This move aims to make trading of popular cryptocurrencies even easier. FDUSD is on track to become a crypto hub, expected by June 2023. Also, FDUSD acts as a USD-pegged stablecoin and there are no transaction fees on Binance.
Binance has opened FDUSD trading pairs to user trading on its platform from September 7, 2023. These pairs include DOGE/FDUSD, SOL/FDUSD, TOMO/TRY, UNFI/TRY, and XRP/FDUSD. Users will be able to continue trading on newly added FDUSD trading pairs with zero maker fees. This will allow users to trade at lower costs while trading.
Considering the growth potential of FDUSD, this move by Binance makes a lot of sense. FDUSD currently has a market cap of $382 million. On the other hand, Tether still has growth potential compared to USDt’s (USDT) $83 billion market cap.
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