How did FDUSD become the biggest stablecoin?
First Digital Dollar (FDUSD) secured its position as the fourth largest stablecoin by market capitalization. In the year As of January 22, 2024, the market cap is $2.6 billion, up from $1.8 billion at the beginning of the year.
In an impressive six-month surge, First Digital USD (FDUSD) has become the fourth largest stablecoin.
What contributed to FDUSD's adoption?
FDUSD, which started its journey in June 2023, started with a modest market capitalization of less than $100 million. In six months, it has outperformed competitors such as TUSD, USDD and FRAX. It is below the giants USDT, USDC and DAI.
FDUSD is a reserve-backed stablecoin, originally launched on the Ethereum and BNB Chain networks. Transparent backup management verified by a third-party auditor supports rapid adoption. The holdings include US Treasury bills, reserves and cash, ensuring full collateralization and stable value.
Read more: Guide to the Best Stablecoins in 2024
Another key to FDUSD's growth is its expansion across multiple blockchain networks. This strategy increases mutual interaction and attractiveness.
Binance's recent pivot from BUSD to FDUSD also impacted the market. After Paxos, the BUSD issuer received a Welsh notice from the SEC, Binance urged users to switch to alternatives such as FDUSD. This change was instrumental in increasing FDUSD's market share to 1.54 percent.
USDT, the largest by market capitalization, has grown significantly. As of January 1st, the market capitalization increased from $91.69 billion to $94.84 billion, keeping statscoin in the dominant position.
The market reacted favorably to the growth of FDUSD, especially when compared to other stablecoins. For example, TrueUSD linked to Justin Sun has traded below $0.97 while the FDUSD market cap is rising.
Read more: What is Stablecoin? Beginner's guide
“That's ironic that TUSD started going down in MCAP when FDUSD started going up in MCAP. asked a crypto trader under the pseudonym Barenaked Crypto.
In conclusion, FDUSD's rise to the fourth largest stablecoin is supported by strong financial practices and major exchanges like Binance.
Disclaimer
Adhering to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This newsletter aims to provide accurate and up-to-date information. However, readers are advised to independently verify facts and consult with experts before making any decisions based on this content. Please note that our terms and conditions, privacy policy and disclaimer have been updated.
