The emergence of the First Digital USD stablecoin (FDUSD) has created waves in the cryptoverse, particularly on the renowned exchange platform, Binance. Recent data reveals that First Digital USD trading pairs have surged to an all-time high, constituting a remarkable 38% of Binance’s total spot trading volume on February 12.
This substantial increase, a staggering 42.6% spike compared to the previous month, underscores the growing traction and acceptance of FDUSD among traders. Analysts attribute this surge to the favorable trading conditions associated with First Digital USD pairs. With zero maker fees and the BTC/FDUSD pair offering free trading, it’s no surprise that First Digital USD has become an attractive option for traders seeking cost-effective transactions.
Rebecca Stevens, a senior research analyst, suggests that the decision to discontinue support for BUSD on Binance might have prompted users to transition to the newer stablecoin. FDUSD’s inception in June 2023 by FD121, a subsidiary of Hong Kong-based custodian and trust company First Digital, marked a significant milestone in the cryptocurrency space.
Binance’s subsequent listing of FDUSD further bolstered its prominence, offering traders a seamless and fee-efficient avenue to engage in digital asset trading. As First Digital USD continues to gain momentum, its impact on the broader cryptocurrency ecosystem remains a topic of keen interest and scrutiny.
FDUSD Emerges as Top Choice Amid TUSD Uncertainty
At the beginning of the year, the stability of trueUSD (TUSD) had faltered, dropping below its $1 peg to $0.988, as reported by TWJ. This marked the second de-pegging incident in two months, following a similar decline to $0.9957 in June 2023. A key factor contributing to this decline was the surging demand for First Digital’s FDUSD stablecoin, supported by Binance.
Binance’s introduction of zero-fee FDUSD trading had spurred TUSD holders to switch, particularly with First Digital USD being the preferred stablecoin for token staking on Binance Launchpad. It was noted that TUSD holders offloaded their holdings amid uncertainties surrounding Launchpad pools.
Furthermore, concerns over TUSD’s association with Justin Sun, the founder of Tron and Poloniex, coupled with shrinking market cap due to potential hacks, have further fueled its downfall. As the crypto landscape evolves, First Digital USD’s dominance and TUSD’s challenges reflect the shifting dynamics within the stablecoin market.