TUSD’s volume might go over the roof, thanks to Binance
- The exchange communicates details about new TUSD pairs.
- The stablecoin’s exchange supply flatlined despite the increasing volume.
In a 30 May official statement, Binance disclosed that TrueUSD [TUSD] would get three new trading pairs on the exchange. According to the announcement, Litecoin [LTC] would join Cardano [ADA] and Binance USD [BUSD] as pairs linked with the stablecoin.
Out of the lot, BUSD’s addition is the only one that could be termed surprising. This was because it was undergoing a phase-out season. For ADA and LTC, the exchange’s decision to add it as a TUSD pair could be connected to recent events.
Bent on not taking the fall
Recently, the volume of ADA and LTC has been increasing, as interest in the cryptocurrencies spiked. At the time of writing, ADA’s volume was 177.9 million. In Litecoin’s case, the volume rose as high as 429 million.
Based on on-chain data, TUSD’s volume also rose to $1.9 billion— one of the highest since it gained the crypto community’s attention earlier this year. For context, volume displays crowd sentiment and can be used to carve out bullish or bearish outcomes.
Bar TUSD, the hike in ADA and LTC’s volume suggests that quite a number of market participants might be bullish on the asset. In turn, it could contribute to TUSD’s adoption provided they maintain the status quo.
Though Binance boasts about being the world’s largest exchange, the new pairing is no guarantee that TUSD’s market cap position will significantly change. Perhaps there could be tendencies to increase, the stablecoin still has the likes of Tether [USDT] and Circle [USDC] to battle.
The hype on a decline
As of this writing, TUSD ranked as the number 31 asset in market capitalization. With its market cap rising above $2 billion, the stablecoin continues to attract the crypto community who have been seeking alternatives to the rest.
In the social dominance context, Santiment showed that TUSD accounted for 0.042%. Social dominance is measured by looking at the percentage of discussions around assets compared to others in the top 100.
So, TUSD’s inability to reach the point the metric was when May began implies that the hype around the stablecoin had decreased.
Realistic or not, here’s TUSD’s market cap in USDT terms
In addition, the supply on exchanges of TUSD has been massively hit with a decrease since 2 May. At press time, the metric was 448.58 million.
Meanwhile, the metric measures the asset supply currently stored in the wallets of centralized exchanges. When the supply decreases, it means some coins are being taken out of these platforms, but when the metric is high, it suggests a potential increase in trading activity with the coin.