An important altcoin from the Binance listing has reached record highs in the Bitcoin trading pair. This development points to a significant activity in the altcoin market. Here is the latest situation in the stablecoin industry after the US has done it…
This altcoin has reached the largest BTC trading volume on Binance
According to crypto research platform Kaiko, TrueUSD, a little-known stablecoin, is taking on the largest Bitcoin volume thanks to a major exchange. Last month, Binance removed zero-fee Bitcoin trading promotions excluding Bitcoin-TrueUSD, which increased demand for TrueUSD.
Thus, TrueUSD’s share of Bitcoin trading volumes on Binance rose to 50%. Stablecoins are an essential tool for investors looking to trade in the crypto industry, and they usually have a fixed value.
As we quoted as Kriptokoin.com, the US regulator CFTC launched an investigation against the crypto exchange Binance in March. The CFTC alleges that Binance engages in illegal activities such as offering leveraged crypto trading to US users. The lawsuit covers transactions made through Binance during 2019 and 2020, and the amount of the penalty has yet to be determined.
This event once again brought up the regulatory and legal issues that are frequently on the agenda in the crypto industry. The rise of TrueUSD unfolded amid the ban on the production of BUSD in the CFTC lawsuit
TrueUSD fills the gap caused by US regulators
Earlier this year, the $132 billion stablecoin industry was hit hard when New York regulators ordered Paxos, the issuer of the Binance-branded stablecoin BUSD, to stop issuing new tokens. After this, the circulation of the TrueUSD stablecoin increased.
TrueUSD has now become the fifth largest stablecoin with a market cap of $2 billion. This marks a threefold increase from its market cap of $755 million at the beginning of 2023. Despite this parabolic rise, Tether’s USDT still contributes the greatest liquidity for Bitcoin pairs.
USDT continues to lead
“Market depth data on Binance shows us that BTC-USDT is still leading in liquidity and market makers are more comfortable choosing Tether over TUSD,” Kaiko research analyst Conor Ryder said. The BTC-USDT trading pair accounts for 80% of the total trading volume on centralized crypto exchanges.
However, TrueUSD’s share of the market has also increased significantly, with the BTC-TrueUSD pair climbing up to 50% of Bitcoin trading volumes on Binance. TrueUSD was seen as a reliable alternative by investors looking to trade Bitcoin. “TrueUSD is supported similarly to BTC-USDT, with lower volatility and USD reserves. Therefore, investors can use TrueUSD as an alternative,” he said.
All in all, stablecoins are an essential tool for investors looking to transact in the crypto industry. Because they have a fixed value, investors can trade avoiding price fluctuations. Although Tether is still the most liquid stablecoin, the increase in circulation of TrueUSD indicates that there are other reliable stablecoins on the market that can be seen as an alternative to Tether.
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