After a Binance exchange announcement in August, the First Digital Dollar (FDUSD) stablecoin's market cap experienced a notable increase. On June 1, 2023, the dollar-pegged stablecoin FDUSD made its debut on the Ethereum network and the BNB Smart Chain. On the #cryptocurrency exchange, the token was formally added to a limited number of trading pairs in July.
Binance's Instructions Encourage FDUSD Adoption
On August 31, #Binance verified rumours that it intended to stop providing support for the Binance USD (BUSD) stablecoin in response to the governmental ban on the production of the currency.
The BUSD issuing business Paxos Trust was instructed by The New York Department of Financial Services (NYDFS) to stop minting the stablecoin back in March. Since then, the market supply of BUSD has fallen precipitously, falling by more than 80% in the previous eight months.
The exchange will start the progressive termination of all BUSD goods on its platform, according to an official article, and it is advising its 150 million users to trade their BUSD tokens for other assets by February 2024.
The cryptocurrency exchange specifically urged consumers to switch from BUSD to FDUSD by offering incentives including no trading fees and a 1:1 direct swap ratio.
FDUSD's market cap value has increased by 21.49% since August 31 from $324.75 million to its current value of $394.68 million, according to statistics from CoinMarketCap.
This shows that Binance's marketing of FDUSD as a BUSD substitute is working, as seen by a sharp increase in the adoption of the former over the past few days.
For perspective, the market cap measure depicts a cryptocurrency's entire worth based on its market price and the quantity of active tokens. Given that FDUSD has a fixed value of $1, according to CoinMarketCap's statistics, more than 70 million FDUSD tokens have been placed into circulation in the last week.
In addition, the DeFi analytics tool, DeFiLlama, reports that FDUSD is currently the ninth-largest stablecoin in the cryptocurrency industry, surpassing other well-known assets like Gemini USD (GUSD).
Binance Introduces Additional Trading Pairs for the FDUSD
In other developments, Binance continued to promote stablecoins on September 6 by announcing three new FDUSD trading pairings.
The trading for these three trading pairs, DOGE/FDUSD, SOL/FDUSD, and XRP/FDUSD, will start on September 7 at precisely 08:00 UTC.
This action was taken a week after Binance advised customers to exchange their BUSD tokens for other assets and indicated that it will "gradually" stop supporting the BUSD currency. With the delisting of eight BUSD isolated and cross-margin pairings, the exchange has started to discontinue.
After these statements, the market value of the BUSD token has reached an all-time low of $2.73 billion, continuing the decline in the price of the currency. Additional information from DeFiLlama reveals that over the past one and seven days, the BUSD market cap has decreased by 4.16% and 12.23%, respectively.