TUSD Faces Volatility as Value Drops Below $1
On Monday, TUSD experienced instability in its value, falling below the $1 mark and hovering around $0.98. This was due to challenges related to the real-time attestations of the company. As of January 16, 2024, TUSD’s circulating supply stands at 1.92 billion tokens.
Binance Holds a Significant Portion of TUSD Supply
Binance, one of the top five ERC20 wallets, holds a large portion of TUSD’s supply. Out of the total supply, only 391.99 million TUSD tokens are on the Ethereum blockchain, while 1.48 billion are on the Tron network. Binance’s cold wallet holds around 1.4 billion tokens.
TUSD’s Fluctuating Value Sparks Debate
TUSD briefly reached $0.996 per coin but quickly dropped to about $0.987 on Tuesday morning. This instability has generated considerable debate on social media, with many questioning the reasons behind TUSD’s fluctuating peg. Most of the trading for the coin occurs on Binance, with a significant portion of its volume coming from this exchange.
Market Valuation and Parity Issues
TUSD’s global trade volume in the last 24 hours reached $425 million. Despite a large supply of 1.92 billion TUSD, its market valuation on Tuesday was slightly lower at $1.89 billion. TUSD joins other stablecoins that have faced parity issues since the collapse of the Terra blockchain ecosystem in May 2022.
Hot Take: TUSD Experiences Volatility, Raising Concerns
Market insights reveal that on January 15, 2024, the stablecoin TUSD deviated from its usual $1 parity, dipping to $0.979 per coin the next day. By 10:00 a.m. Eastern Time (ET) on Tuesday, it managed to recover slightly, climbing above the $0.99 mark. This volatility has sparked significant debate and scrutiny, with many questioning the reasons behind TUSD’s fluctuating peg. With a market valuation slightly lower than its supply, TUSD faces challenges in maintaining stability in its value.
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