The Rise of TUSD in Bitcoin Trading Pairs: A Close Look at Coin An’s Market Share

04/16/2023 02:01 • Metaverse & Beyond • 66 views

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%

In April 2021, Coin An experienced an interesting shift in its BTC trading pairs. The BTC-TUSD and BTC-USDT pairs saw TUSD’s market share skyrocket to 49%, almost equal to Tether’s USDT. This significant change in market share begs the question: why is TUSD gaining popularity among traders, and how does it compare to USDT?

The Overview of TUSD and USDT

First, let’s take a closer look at TUSD and USDT. Both are stablecoins, meaning they are pegged to a stable asset such as the US dollar. TUSD, or TrueUSD, was launched in 2018 with the aim of building a more transparent and trustworthy alternative to existing stablecoins. USDT, or Tether, was launched in 2014 and has since grown to become the most widely used stablecoin in the crypto market.

The Rise of TUSD

Now, let’s examine why TUSD’s market share is on the rise in Coin An’s BTC trading pairs. One possible explanation is the zero trading costs associated with TUSD. This makes it an attractive option for traders looking to avoid fees on trades. Additionally, TUSD’s transparency and reliability as a stablecoin by a reputable company, TrustToken, gives it an edge over other stablecoins in the market.
Another possibility is that Tether’s recent legal issues may have led some traders to seek alternatives. Although Tether has since settled with the New York State Attorney General’s office, its legal troubles may have made some traders wary of relying too heavily on the coin.

The Decline of USDT

Despite TUSD’s rise in market share, the overall trading volume in Coin An’s BTC pairs has declined rapidly due to USDT. This could be because USDT still holds the majority of the market share, and traders may be hesitant to switch from a more widely accepted stablecoin.
Another reason for the decline in USDT trading volume could be the growing concerns around Tether’s reserves. Tether has faced accusations of not having enough reserves to back its USDT tokens, leading to concerns over its stability. This has resulted in some traders becoming hesitant to use USDT over other stablecoins such as TUSD.

Conclusion

Overall, TUSD’s significant rise in Coin An’s BTC trading pairs is indicative of the market’s growing interest in transparent and reliable stablecoins. However, USDT’s market dominance and the concerns over its reserves continue to pose a challenge to other stablecoins’ widespread acceptance.

FAQs

1. What is TUSD’s distinctive feature compared to other stablecoins?
TUSD is built for transparency and trust through its compliance with regulations, daily attestations of its reserves, and segregation of fiat funds from TrustToken’s operating accounts.
2. How does Tether’s legal issues impact its market share?
Traders may become wary of relying too heavily on a stablecoin with ongoing legal issues surrounding its reserves.
3. Is TUSD destined to replace USDT as the leading stablecoin?
It is unclear if TUSD will eventually surpass USDT in market dominance. However, its growing acceptance among traders suggests a shift in the market’s demand for more reliable and transparent stablecoins.

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