Surprisingly, TrueUSD (TUSD), a stablecoin pegged to the US dollar, experienced a significant decline to its all-time low of $0.9685. This comes after a whopping $238.3 million in sales in the last 24 hours. The Binance events have raised concerns about the stability of this once prominent stablecoin.
TUSD is at record low
TrueUSD’s problems began to surface on January 16, when the stablecoin lost its $1 peg and began trading around $0.98. However, the situation worsened on January 18 when TUSD fell to $0.968, marking a new record in deviation from the targeted value. The exact reason for this incident has not yet been confirmed, but data from the leading cryptocurrency exchange Binance shows that users transferred a significant amount of TUSD, which contributed to the coin’s downward trend.
At the time of writing, TrueUSD has made a slight recovery and is currently trading at $0.986. Despite this recovery, it remains below its original $1 peg. The sell-off occurred mainly through the TUSD/USDT pair on Binance, likely triggered by panic among investors over the future of the stablecoin.
TrueUSD faces decline
TrueUSD in particular not only suffered devaluation but also reported a significant drop in market value. The cryptocurrency lost $100 million in market cap on the first day of the peg, and its overall market cap fell from $2.4 billion to $1.9 billion last month. This setback raises questions about TrueUSD’s stability and future prospects in the cryptocurrency market.
Launched in 2018, TrueUSD rose to prominence when it was picked up by Binance, with the exchange holding 90% of the total stablecoin supply as of July 2023. However, Binance’s launch of a new stablecoin, FDUSD, followed by Binance’s TUSD trading pairs, signaled a favorable shift. As the cryptocurrency community grapples with TrueUSD’s recent difficulties, the stablecoin’s ability to regain its stable value and regain investor confidence remains uncertain. The sell-off, combined with concerns about market dynamics and the changing landscape of stablecoin preferences, underscore the inherent volatility of the cryptocurrency space. TrueUSD’s reaction to these developments and its strategic moves in the coming weeks will undoubtedly be watched closely.
To be informed about the latest developments, follow us Twitter’in, Facebookin and InstagramFollow on . Telegram And YouTube Join our channel.