TUSD Supply Surges as 1 Billion Injected Amidst Declining Stablecoin Market

In the midst of a decline in the stablecoin market, TUSD, a dollar-pegged token, has witnessed a significant surge in supply. Recent data highlighted the challenging times faced by the stablecoin economy, with redemptions causing the market valuation to reach its lowest point in 20 months, as reported by Bitcoin.com News. As of June 19, 2023, the collective market capitalization of leading stablecoins stands at $129.99 billion, with a 24-hour global trade volume of $20.84 billion.

Interestingly, while three of the top five stablecoins experienced supply reductions ranging from 3.8% to 22% in the past 30 days, TUSD has seen a remarkable increase of approximately 53.5% during the same period. Notably, TUSD’s market valuation surged on July 16, 2023, reaching $3.11 billion, a substantial jump from the previous day’s $2.04 billion. Remarkably, a single day contributed to 52% of the 30-day increase. According to Etherscan’s smart contract data, the circulating supply of TUSD tokens is approximately 3,135,633,560 as of June 19.

Interestingly, despite having 52,079 TUSD holders, the top 10 wallets control a significant portion, amounting to 83.31% of the circulating supply. Among these top wallets, Binance stands out as the largest holder, with one of its addresses containing 389,561,743 TUSD tokens. Additionally, Binance controls four more addresses within the top ten, holding 45,233,811; 28,000,000; 10,601,602; and 10,270,001 TUSD tokens, respectively. Aave, the decentralized finance (defi) protocol, has also locked 4,780,182 TUSD for its aTUSD tokens.

Statistics from Nansen.ai indicate that Binance’s TUSD holdings account for 5.26% of the exchange’s $52.45 billion portfolio. TUSD was introduced in mid-2018 through the Trust Token platform as an ERC20-based stablecoin. The company claims that it is fully backed by U.S. Dollars and operates under the oversight of a regulated entity. TUSD had collaborated with custodian Prime Trust, the same company that Bitgo had expressed interest in acquiring. However, TUSD’s Twitter account recently announced a temporary pause in mints via Prime Trust, citing uncertainties. The company stated that the minting and redemption processes through other banking partners remain unaffected and expressed its intention to resume the Prime Trust process when circumstances improve.

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