2024-02-15 18:25:03
The First Digital USD ($FDUSD) stablecoin has achieved its largest ever share of Binance’s spot trading volume. Launched in June 2023, stablecoin quickly became a favorite among users thanks to its favorable trading conditions and reliable background.
Goodbye Binance USD, hello First Digital USD!
First Digital USD appeared on the market in June 2023 and is issued by FD21, a subsidiary of First Digital Limited in Hong Kong. FDUSD has a reserve verification report audited by independent auditors, the FDUSD supply in circulation is fully secured by cash or cash-equivalent assets, which gives rise to confidence. Stablecoins help to bridge the gap between the fiat world and the crypto world, however, if the issuer is unable to fulfill the immediate redemption at face value, the price of the stablecoin can move – as happened in May 2022 in the case of the now TerraClassicUSD (USTC).
Behind the rise of FDUSD is the fact that Binance permanently removed its own stablecoin, Binance USD, from its offer on December 15, 2023. In February 2023, the New York Financial Authority called on Paxos, the company behind Binance USD, to cease further issuance of Binance USD, and Paxos complied. The crypto exchange with the largest volume has been continuously and systematically reducing its supply of BUSD for a year, and on December 15 it was finally phased out. For those who did not make the conversion, Binance automatically converted their remaining BUSD to FDUSD.
FDUSD dominates the stablecoin market
Binance launched FDUSD on its exchanges on August 4, 2023, was initially only tradable once morest Bitcoin, Ethereum and other stablecoins. The popularity of FDUSD was primarily due to the free trading on the BTC/FDUSD pair – both limit and market orders; in the case of ETH/FDUSD, only limit orders are free of charge. In the summer of 2023, the entire turnover of FDUSD was deposited on the Binance exchange, but today trading with FDUSD also occurs on other exchanges, but Binance still accounts for a significant part of it.
FDUSD reached the market capitalization of $1 billion in December 2023, and during its half-year operation, it did not show a significant fluctuation compared to the $1 value. It is currently the 37th largest cryptocurrency with a market capitalization of $2.84 billion, and its trading volume is in the top 10 almost every day.
According to Rebecca Stevens, a cryptoanalyst, the reason for the rise of FDUSD is primarily the free Bitcoin exchange and the elimination of Binance USD, but at the same time, the team behind FDUSD is doing reliable work that meets international standards. Even though it currently supports the Ethereum and BNB chain, it may appear on other chains in the future.
Trading pairs containing FDUSD accounted for 38% of Binance’s total volume in February 2023, a significant increase of 43% compared to the previous month. FDUSD is currently the 4th largest stablecoin in the market, if it develops at this rate, it can easily overtake the 3rd largest stablecoin currently, DAI.
Published on the BitcoinBázis page.
1708023401
#stablecoin #replacing #Binance #BUSD #broke #record
