- Binance to stop BUSD spot trading and withdrawals in September.
- FDUSD market cap and volume rose significantly in the past 24 hours.
Following Binance’s [BNB] official announcement, the future of BUSD appeared to be reaching its conclusion. The exchange prepared for this transition and introduced another stablecoin, First Digital USD [FDUSD].
How has FDUSD performed since its launch?
Binance begins BUSD’s phase-out
On 31 August, Binance officially announced the gradual discontinuation of support for Binance US Dollar (BUSD) products. According to the Binance, BUSD withdrawal was scheduled to halt on 7 September, while deposits would continue until further notice.
In addition, Binance declared its intention to delist all spot and margin trading pairs associated with BUSD. However, the exchange actively encouraged users to convert their BUSD holdings to other stablecoins available on the platform.
Notably, Binance incentivized users to transition to FDUSD, a recently launched stablecoin. Users were allowed to trade their BUSD balance for FDUSD with zero trading fees. Furthermore, they could convert their BUSD holdings into FDUSD at a 1:1 ratio.
FDUSD appeared to be the chosen successor for the stablecoin functions formerly attributed to BUSD within the Binance network.
The current state of FDUSD
Based on CoinMarketCap data, as of press time, the market capitalization of FDUSD was over $382 million. This, however, differed from the figures reported 24 hours ago.
On 31 August, the market capitalization was around $353 million before eventually rising to over $362 million. As of this writing, CoinMarketCap indicated that the market capitalization had surged by more than 28%.
Furthermore, there was a notable increase in trading volume over the past 24 hours. The volume rose from approximately $101 million to approximately $144 million. According to the chart, this represented an increase of nearly 40% as of this writing.
Source: CoinMarketCap
Before the introduction of FDUSD, Binance appeared to favor TrueUSD [TUSD] as a stablecoin option. As of this writing, TUSD had a market capitalization exceeding $2 billion. However, how did they fare when comparing these stablecoins to leading stablecoins?
USDT and USDC still lead the way
As of the most recent data from CoinMarketCap, Tether [USDT] and Circle [USDC] continued dominating the stablecoin market. USDT boasted a substantial market capitalization of over $82 billion, while USDC followed with a market cap of over $26 billion.
These figures underscored that these two stablecoins maintained the highest user adoption levels and enjoyed significant trust within the cryptocurrency community.
In contrast, FDUSD appears to have a long journey ahead regarding adoption. Its current trading volume and market capitalization suggested relatively low adoption compared to USDT and USDC.
The cryptocurrency market is dynamic and subject to rapid changes, so how FDUSD fares over time remains to be seen. Competition among stablecoins is fierce, and achieving widespread adoption is a challenge.
However, with Binance’s support and strategic initiatives, FDUSD may have opportunities to carve out its niche and grow its user base.
