• FDUSD, a USD-backed stablecoin, recently got listed on Binance and recorded 5 million in hourly trade volumes on the day of the listing.
• The zero-fee trading program might have contributed to the soaring volume of the coin and its peg stabilized at $1.00.
• Binance is looking to promote other stablecoins as it phases out BUSD.
Introduction
FDUSD, a USD-backed stablecoin, recently got listed on Binance and recorded 5 million in hourly trade volumes on the day of the listing. This impressive start reflects greater demand for the newly-listed asset due to its zero-fee trading program that encourages more investors to partake in trading activities. Subsequently, FDUSD’s peg stabilized at $1.00 at the time of writing, per data from CoinMarketCap .
Background
FDUSD is issued by Hong Kong-based First Digital Labs and is part of Binance’s zero fee trading program with all spot trading pairs, including FDUSD/USDT becoming exempt from maker and taker fees. This promotional strategy employed by Binance was also used for another stablecoin – TrueUSD [TUSD] – whose market cap has more than tripled on a year-to-date (YTD) basis according to Glassnode.
Phasing Out BUSD
Binance’s aggressive backing of newer stablecoins should be seen in light of phasing out stage of their own coin – Binance USD [BUSD] . Its downfall commenced after a New York based regulator instructed Paxos; which issues the tokens; to halt minting new tokens leading Binace to distance itself from it and actively promote other stablecoins instead.
Aim Of Stablecoin Market Correction
The success of TUSD and FDUSD was critical for correcting imbalances in current state of popular stablecoin market wherein Tether [USDT] accounted for 66% share due to decline in USD Coin [USDC].
Conclusion
Binance’s successful promotion strategies are helping new coins gain traction and pose stiff competition against established ones like Tether or USDC while aiming for better stability within global markets through balanced distribution between various options available across exchanges worldwide.