TUSD's currency dominance: Behind the concentration of trading volume

In today's digital currency field, the rise of stablecoins is undoubtedly a striking phenomenon. In particular, TUSD (TrueUSD), whose currency holdings have reached 90% of the supply, shows its strong influence in the market. According to Kaiko's data, TUSD's trading volume is almost completely concentrated. This phenomenon not only reflects the importance of TUSD in the digital currency market, but also triggers people's deep thinking about digital asset liquidity and market structure.

As an important form of digital currency, the main function of stablecoins is to provide the market with a stable means of value storage. As a stablecoin backed by legal currency, TUSD has successfully attracted the favor of a large number of investors and traders by pegging each TUSD to the US dollar at a ratio of 1:1. Because of this, TUSD has quickly occupied an important position in the market and has become one of the preferred trading pairs for many exchanges.

First of all, the supply of TUSD is concentrated in the hands of a few exchanges and investors. This trend of centralization is not uncommon in the digital currency market. According to the latest data, 90% of TUSD's supply is almost in the hands of top exchanges and institutions, which makes its trading volume almost completely concentrated. This centralization phenomenon helps to form higher liquidity, however, it also raises some potential risks and challenges.

Concentrated trading volume makes the market price more volatile. Under the influence of large transactions, price volatility may increase, leading to market instability. For example, a large investor buying or selling a large amount of TUSD in a short period of time may have a significant impact on the market price. This phenomenon also exists in traditional financial markets, but in the digital currency market, due to the relatively small number of participants, the impact of price fluctuations may be more obvious.

In order to better understand the phenomenon of TUSD's trading volume concentration, we can analyze it from multiple angles. First, the change in market demand is an important factor. As more and more exchanges begin to support TUSD, user demand has also increased. This increase in demand has promoted the circulation of TUSD, allowing its share in the market to continue to expand. In addition, TUSD's transparency and compliance have also won it the trust of investors. Compared with some unstable digital assets, TUSD's performance in value stability is undoubtedly more attractive.

Secondly, TUSD's market strategy is also one of the important reasons for its success. Through cooperation with multiple trading platforms, TUSD can quickly expand its market coverage and thus increase its trading volume. At the same time, the TUSD team continues to work hard to improve its technical infrastructure to ensure the security and convenience of users during transactions. This user-centric strategy not only enhances user stickiness, but also wins TUSD a place in the highly competitive market.

Of course, TUSD's success is not without challenges. As the market continues to develop, competitors are also emerging. Various emerging stablecoins such as USDC and DAI are also competing for market share. These competitors are constantly innovating in technology, compliance and marketing, which has brought considerable pressure to TUSD. In such a market environment, TUSD must continue to optimize its products and services to maintain its market competitiveness.

In addition, changes in market supervision are also a factor that cannot be ignored. With the popularity of digital currencies, governments and regulators have gradually increased their supervision of stablecoins. This requires TUSD to continue to work hard on compliance in order to cope with the changing regulatory environment. Only under a compliant framework can TUSD continue to attract investors' attention and maintain its market position.

It is worth noting that although TUSD's centralized trend brings liquidity and transaction convenience, it may also lead to market fragility. Market participants should be wary of the potential risks brought about by such centralization. In the digital currency market, excessive concentration of any single asset may lead to irrational market fluctuations. Therefore, when choosing digital assets, investors should rationally assess risks and avoid losses caused by blindly following the trend.

When discussing the market performance of TUSD, we cannot ignore the improvement of user experience. As TUSD's position in the market continues to rise, users' expectations for its service quality are also increasing. In order to meet this demand, the TUSD team continues to optimize the user experience and launch more friendly trading interfaces and services. This user-oriented strategy not only improves user satisfaction, but also further enhances TUSD's market competitiveness.

In future development, TUSD should continue to pay attention to market dynamics and adjust its strategy in a timely manner to cope with the changing market environment. At the same time, strengthening linkage with other digital assets and expanding its application scenarios are also important means to enhance its market position. Through continuous innovation and improvement of service quality, TUSD is expected to continue to maintain its leading position in the fiercely competitive digital currency market.

In general, the strong strength shown by TUSD in the digital currency market is not only the result of its own development strategy, but also an inevitable reflection of changes in market demand. As the market continues to evolve, TUSD needs to keep its advantages while also paying attention to market changes and user needs to ensure that it remains invincible in future competition. For investors, a deep understanding of TUSD's market dynamics and development trends will help them make more informed investment decisions.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

Coin Circle (120Btc.com) News: After the world's largest ()-supported stablecoin BUSD was sanctioned by US regulators, Binance has taken TrueUSD (TUSD) as its new favorite. Not only did it announce that all TUSD spot and margin will be free of order fees, but it also minted a large number of stablecoins.

CoinGeko data shows that with the re-issuance of TUSD in June this year, its issuance has officially exceeded 3 billion, and its market value is close to BUSD, becoming the fifth largest stablecoin. Since 2023, the issuance of TUSD has increased by more than 200%. It can be said that it is the only stablecoin whose issuance has grown rapidly during the cryptocurrency bear market.

Binance holds nearly 90% of TrueUSD

However, DLNews quoted DeFiLlama's data earlier and reported that after Binance updated the new address with the data tracker, its TUSD holdings seemed to have increased significantly, and currently holds nearly 2.7 billion US dollars, which means that Binance has nearly 90% of the market share of TUSD.

DeFiLlama explained that while the site tracks Binance's holdings in real time, Binance often changes its address and announces it regularly. Binance may have added a new address holding TUSD not long ago, but the DeFiLlama site will not track it until Binance's announcement today.

In addition, cryptocurrency research firm Kaiko pointed out that TUSD's trading volume is "almost entirely concentrated" on Binance. According to a research report released on Monday, the average daily trading volume of TUSD on decentralized exchanges in the second quarter of 2023 was about $2 million, while Binance's trading volume reached $2 billion in one day alone.

Well-known cryptocurrency researcher Adam Cochran also found the suspiciousness of this matter. He forwarded the post and said: Binance’s relationship with BUSD was cut off, and the legal committee and compliance department withdrew due to the investigation of the Ministry of Justice, but now holds 90% of TUSD... TUSD was minted by Sun (Sun Yuchen) through the private key controlled by the shell company, and was allowed to be used as collateral for 90% of TVL on Binance... It is understood that last week, under Adam Cochran’s in-depth investigation, he discovered the abnormal relationship between Sun Yuchen and TUSD, and also dug out the ownership of Sun Yuchen and his family and many Chinese shell companies, as well as the suspicious business model. Prime Trust, the previous service provider of TrueUSD, has gone bankrupt due to "insolvency" On the other hand, the U.S. Department of Financial Institutions (FID) of Nevada accused TUSD's minting service provider, the cryptocurrency custody platform "Prime Trust", of insolvency and ordered it to stop business at the end of June, and applied to the local court on June 26 to serve as a bankruptcy administrator to thoroughly investigate all the financial conditions of Prime Trust to protect users. According to the legal documents filed, Prime
Trust owes customers more than $85.67 million in fiat and $69.509 million worth of cryptocurrencies, but the platform currently holds only $2.904 million in fiat and $68.648 million worth of crypto assets.

In addition, the document also alleges that Prime
Trust discovered as early as December 2021 that it had lost access to its old wallet on the digital asset security platform Fireblocks and was unable to obtain the cryptocurrencies in the wallet.