FDUSD's market cap is up 51% in a month
Date: 2023-09-06 Author: Karina Ziganova Categories: BLOCKCHAIN
The supply of First Digital USD stablecoin (FDUSD) is up 51% over the past 30 days, approaching a market cap of $394 million. According to CoinGecko, FDUSD is now the 11th largest dollar stablecoin by market cap.
The growing market capitalization of FDUSD is primarily due to activity on the Binance cryptocurrency exchange. Currently, most of the FDUSD assets are concentrated on Binance, with a minimal presence on other platforms.
“More than 90% of the FDUSD supply is stored on Binance, while at the moment there is no real presence in DeFi or any on-chain applications. At the moment, nothing particularly interesting so far, ”Nansen analyst Martin Lee told The Block.
How Binance integrated FDUSD
Shortly after the release of FDUSD, the largest cryptocurrency exchange announced the listing of this stablecoin. To encourage the use of the token from First Digital Group, Binance has removed the trading fee for trading pairs with FDUSD.
Binance later announced that it would be ditching its own Binance USD (BUSD) stablecoin in favor of FDUSD. Starting September 15, the exchange announced that it will stop using BUSD in investment products and automatically replace the coin with FDUSD. In addition, the exchange offers a 6% APR on FDUSD deposits through its Earn product.
Binance will end support for BUSD
At the end of August, Binance announced that it would end support for its BUSD stablecoin in 2024. The use of the stablecoin on the platform will be phased out until its issuer Paxos completes the coin buyback.
Prior to this, the Binance stablecoin faced a number of difficulties. In particular, in February, Paxos announced the termination of the minting of new tokens, citing the order of the state regulator, the New York Department of Financial Services (NYDFS).
However, BUSD received the biggest blow as a result of a US Securities and Exchange Commission lawsuit against Binance. One of the claims was the offer of unregistered securities, including the platform's native token BNB and BUSD.
