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A Look at the Reasons Behind the Surge in TUSD’s Market Share

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On April 16th, Kaiko data showed that the BTC-TUSD and BTC-USDT trading pairs of Coin An saw TUSD\’s market share rise to 49%, almost equal to Tether\’s USDT. However, the growth of

A Look at the Reasons Behind the Surge in TUSDs Market Share

On April 16th, Kaiko data showed that the BTC-TUSD and BTC-USDT trading pairs of Coin An saw TUSD’s market share rise to 49%, almost equal to Tether’s USDT. However, the growth of TUSD cannot offset the rapid decline in trading volume caused by BTC-USDT, indicating that although TUSD trading costs are zero, traders are still unwilling to use TUSD. （CoinDesk）

Data: The market share of TUSD in Bitcoin trading has increased to 49%

As per the data from Kaiko, on April 16th, the BTC-TUSD and BTC-USDT trading pairs of Coin An saw TUSD’s market share rise to 49%, almost equal to Tether’s USDT. Although TUSD’s growth is commendable, it cannot offset the rapid decline caused by the BTC-USDT trading pair. Reports suggest that even with zero trading costs, traders are still unwilling to use TUSD as a preferred trading currency. In this article, we will delve deep into the reasons behind the surge in TUSD’s market share and the challenges it is facing.

The Rise of TUSD’s Market Share

TUSD, short for TrueUSD, is a stablecoin pegged against the US dollar. It is a reliable and secure digital asset that allows traders to avoid the volatility of cryptocurrencies. As a result, TUSD has emerged as an alternative to Tether and other stablecoins.
The surge in TUSD’s market share can be credited to the increase in traders’ confidence in the stablecoin. TUSD offers better transparency, security, and reliability than Tether, which has been entangled in controversy over the years. Furthermore, TUSD also has a higher annual percentage yield (APY) than USDT.
Since its launch, TUSD has also secured deals with several leading cryptocurrency exchanges, including BitMax, Bittrex Global, and Huobi Global. This has made TUSD a more accessible and popular option for traders.

The Challenges Faced by TUSD

Despite the rise in TUSD’s market share, the stablecoin is still facing multiple challenges. One of the most significant challenges is the unwillingness of traders to use TUSD as a primary trading currency. Reports suggest that even with zero trading costs, traders prefer to use other cryptocurrencies for trading.
The reason for this reluctance can be attributed to the dominance of Tether in the market. USDT has established itself as the preferred trading currency in the cryptocurrency market, and traders are more comfortable trading in pairs that involve USDT, including the BTC-USDT pair. Furthermore, TUSD’s low trading volume compared to USDT also acts as a deterrent for traders.

Conclusion

In conclusion, TUSD’s rise in market share is commendable, considering the challenges it faces. However, it is unlikely that TUSD will surpass USDT anytime soon. USDT’s dominance in the market, combined with TUSD’s low trading volume, will continue to be a significant hindrance. Nevertheless, TUSD’s growth has been impressive, and it is an option worth considering for traders who prioritize transparency and security.

FAQs

1. Is TUSD a reliable and secure option for traders?
Yes, TUSD is a reliable and secure option for traders.
2. What factors contributed to TUSD’s rise in market share?
TUSD’s rise can be attributed to the increase in traders’ confidence in the stablecoin, better transparency, security, and reliability than Tether, and deals secured with leading cryptocurrency exchanges.
3. Why are traders not preferring TUSD as a primary trading currency?
Traders are not preferring TUSD as a primary trading currency because of the dominance of USDT in the market and TUSD’s low trading volume.

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