The Rise of First Digital USD Stablecoin
The market capitalization of First Digital USD (FDUSD) stablecoin has surged by 51% in the last 30 days, reaching a total of $394 million. This growth has positioned FDUSD as the eleventh largest dollar-based stablecoin, according to CoinGecko data.
The Role of Binance in FDUSD’s Adoption
Hong Kong-based First Digital Group launched FDUSD in June and it quickly gained traction after being listed on Binance, the largest centralized exchange. Binance’s support has been crucial in promoting FDUSD, with the token being listed on July 26 and trading fees waived for conversions to other stablecoins like USDT and TUSD.
Binance’s Shift from BUSD to FDUSD
Binance recently announced its decision to discontinue support for BUSD, a stablecoin widely used on its platform, in favor of FDUSD. Starting September 15, BUSD will be replaced by FDUSD in investment products such as “Auto Invest.” Furthermore, Binance is offering a 6% annualized percentage yield on FDUSD deposits through its Simple Earn product.
FDUSD’s Limited Adoption Outside of Binance
Despite its increasing supply driven by Binance’s activity, FDUSD has not gained significant adoption in the broader cryptocurrency and DeFi sectors. Nansen data reveals that the majority of FDUSD holdings are concentrated on Binance, with minimal presence in DeFi applications.
Hot Take: FDUSD’s Potential in the Future
As of now, FDUSD’s presence in the DeFi space and onchain applications is limited. However, with its growing market capitalization and the support of Binance, there is potential for FDUSD to expand its reach and become more prominent in the crypto ecosystem.
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