FDUSD Trading Volume Surges on Binance
The trading pairs involving First Digital USD (FDUSD) have experienced a significant increase in trading volume on Binance, reaching its highest share ever in spot trading volume on the exchange. According to data from The Block Pro, FDUSD pairs accounted for 38% of Binance’s total spot trading volume on February 12, marking a substantial 42.6% increase compared to the previous month.
Factors Driving FDUSD’s Popularity
The popularity of FDUSD on Binance can be attributed to several factors. Firstly, the BTC/FDUSD trading pair is free to trade, which naturally draws attention and contributes to its growing usage. Additionally, most FDUSD pairs on Binance do not have any maker fees, further incentivizing traders to engage with these trading pairs. This combination of cost-effectiveness and accessibility has likely played a significant role in driving up the trading volume of FDUSD pairs on the exchange.
Binance’s Relationship With FDUSD
FDUSD (First Digital USD) is a 1:1 USD-backed stablecoin launched by FD121, a subsidiary of First Digital. Binance listed FDUSD after deciding to cease support for BUSD, its previously endorsed stablecoin. The exchange encouraged its users to convert their BUSD balances to FDUSD, offering a 1:1 conversion ratio without any cost. Since its listing, FDUSD has seen a notable increase in market capitalization.
US Stablecoin Legislation Expected
Last month, Circle CEO Jeremy Allaire expressed confidence in the United States passing stablecoin legislation this year. He noted that other countries had already taken steps to regulate digital currencies tied to their national currencies while the US lagged behind. Allaire believes there is a strong desire to assert US leadership in the space and implement consumer protections.
Conclusion
The surge in trading volume for FDUSD pairs on Binance highlights the growing popularity of this stablecoin. With its cost-effectiveness and accessibility, FDUSD has become an attractive option for traders on the exchange. Furthermore, Binance’s pivot towards supporting FDUSD as its preferred stablecoin demonstrates the platform’s commitment to providing users with a reliable and widely used digital asset. As discussions around stablecoin regulations continue, the United States is expected to take steps towards implementing legislation to regulate these types of digital currencies.
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