- True USD has become the fifth-largest stablecoin by market capitalization.
- The regulatory concerns with BUSD have made TUSD become a viable alternative.
In the past few weeks, True USD [TUSD] surged in market value to become the sixth-largest stablecoin overall. Although Tether [USDT] is the largest stablecoin by market cap, the situation is rapidly changing.
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.
Source: CoinMarketCap
A closer examination, however, can provide light on the impressiveness of this action. It can be seen from the historical chart on Coin Market Cap that before 27 February, True USD had a market cap of roughly $968 million. However, the market cap experienced a dramatic increase on 27 February, which caused it to break the $1 billion barrier.
Positive Netflow as True USD volume increases
A look into the Netflow measure from Glassnode confirmed that TUSD has become more active recently. This became apparent as the activity level on the chart dropped significantly before picking up in February. A positive increase was also visible on the Netflow graph. The last time we saw a rise like that was in October 2021. The Netwflow had exceeded 478,000 TUSD as of this writing.
Source: Glassnode
Looking at Santiment’s volume statistic, it was also clear that TUSD had had relatively modest activity. Yet, there was also evidence of an uptick in activity, albeit a little.
Source: Santiment
Motivation for the recent surge
One other stablecoin, Binance USD [BUSD], was slowly losing ground while TUSD rose in popularity. It was recently reported that Coinbase would be delisting BUSD owing to regulatory issues.
According to research conducted by Nansen on the blockchain, Binance minted almost $130 million worth of TUSD in the past week. The revival of TrueUSD coincides with Binance’s growing reliance on the stablecoin.
Source: Nansen
The stablecoin’s market cap may increase because of doubts concerning BUSD and Binance’s reliance on TUSD. However, 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.
