Trading with the stablecoin TrueUSD (TUSD) has jumped significantly in a week. This was boosted by Binance’s support, including the introduction of a no-fee discount for buying and selling bitcoin (BTC).
TUSD trading volume in the last 24 hours surpassed USD 1 billion. This is a significant increase since earlier this month, when TUSD recorded most of its daily trading volume under USD 100 million. The BTC-TUSD pair on Binance alone clocked up $713 million in the last 24 hours.
The popularity of stablecoins has recently emerged after Binance, the world’s largest crypto exchange by trading volume, chose TUSD as the most popular stablecoin trading pair on its platform amidst a regulatory crackdown on Binance USD. (BUSD) namesake.
New York regulators ordered the issuer of BUSD Paxos, a fintech company based in the state to stop minting these tokens.
Binance has been supporting BUSD through no-fee trading promotions and by booting rival stablecoins including TUSD from its platform.
Following New York’s directive for Paxos, Binance reintroduced trading with TUSD in early March, then provided a no-fee trading promotion exclusively for the BTC-TUSD pair starting March 22.
This week, the exchange expanded TUSD trading to popular cryptocurrencies, including solana (SOL), optimism (OP), polygon (MATIC) and XRP.
The token’s rapid growth follows a major overhaul of the USD 132 billion stablecoin market, which has been grappling with ongoing regulatory actions and a banking crisis.
TUSD has been one of the winners so far. Its market cap has mushroomed to USD 2 billion from under USD 800 million in early January, making it the fifth largest stablecoin.