• True USD [TUSD] has become the fifth-largest stablecoin by market capitalization, surpassing Binance USD [BUSD]
• A closer examination shows that its market cap has experienced a dramatic increase on 27 February, breaking the $1 billion barrier.
• Positive netflow and increased activity were seen as evidence of the surge, which is likely due to regulatory issues with BUSD and Binance’s reliance on TUSD.
True USD Surges to Become Fifth Largest Stablecoin
True USD has become the fifth-largest stablecoin by market capitalization, surpassing Binance USD [BUSD]. At press time, True USD was the fifth largest stablecoin by market capitalization per statistics from Coin Market Cap. Its market capitalization has increased by over 15% in the last 24 hours, reaching over $1.1 billion at the time of writing.
Positive Netflow and Increased Activity
A closer examination shows that its market cap has experienced a dramatic increase on 27 February, breaking the $1 billion barrier. Positive netflow and increased activity were seen as evidence of this surge, which can be further examined through looking into Glassnode’s Netflow measure and Santiment’s volume statistic.
Regulatory Issues with BUSD
The revival of True USD coincides with Binance’s growing reliance on it due to regulatory concerns with BUSD. Coinbase recently delisted BUSD owing to regulatory issues and according to research conducted by Nansen on the blockchain, Binance minted almost $130 million worth of TUSD in the past week.
Dai Still Largest Stablecoin
Although it has seen some increase recently, its market valuation of a little over $1 billion is still dwarfed by that of Dai [DAI],the fourth largest stablecoin worth more than $5 billion.
Conclusion
Overall, True USd has surged in popularity in recent weeks due to regulatory concerns surrounding other stablecoins such as Binance USD [BUSD], leading to an increase in its overall market capitalisation up to just under $1.3billion at present.