The market cap of the FDUSD stablecoin has risen to $1.7 billion. Thus, it becomes the fifth largest cryptocurrency linked to fiat currencies.
It seems that it obtained this status thanks to the Binance exchange’s support and focus on it.
FDUSD supply increased by 74% in two weeks and the company’s market capitalization rose to $1.7 billion
Since the beginning of this December, the digital currency pegged to the US dollar (FDUSD) has seen a significant expansion in its overall value. Which led to an increase in its supply by 690 million coins.
As of December 17, 2023, this increase has brought the company’s market cap to a significant level of $1.7 billion.
This period witnessed a significant growth in currencies linked to the US dollar by 74.92%.
So, the stablecoin FDUSD has seen significant growth in the past two weeks, rising to the position of the fifth largest fiat-pegged cryptocurrency in the crypto market.
Much of the stablecoin market activity in question is focused on-chain on the central cryptocurrency exchange Binance.
With a market capitalization of $1.7 billion, FDUSD ranks 46th among more than 11.5 thousand cryptocurrencies.
The stablecoin contract on etherscan indicates that as of December 17, the coin supply reached 1.7 billion, up 74.92% from 921 million FDUSD since December 2.
But 90.45% of FDUSD trading volume is done on Binance, which has a monopoly on the supply of the stablecoin.
Binance has a monopoly on the supply of stablecoins: what does this mean?
Despite the large trade volume and numerous transactions, FDUSD activity is mostly off-chain, which is reflected in its modest number of 1,771 transactions.
The three largest wallets holding this coin are controlled by Binance, with the largest holding 1.533 billion FDUSD, equivalent to 95.1450% of the total supply.
Furthermore, the second wallet used by Binance contains 4.3751% of the FDUSD supply, indicating Binance’s significant control over the stablecoin.
Binance, the largest cryptocurrency exchange by trade volume, also owns a significant portion of TUSD, with 2.17 billion of the 2.43 billion TUSD coins in circulation.
This control extends to 21.54% of the supply of Tether (USDT), and Binance dominates the fourth and fifth largest stablecoins.
Furthermore, Binance holds a majority stake in the 1.2 billion BUSD stablecoins in circulation and controls the two largest BUSD addresses.
It means that Binance is the largest issuer of FDUSD, a stablecoin backed by the US dollar. This gives it a great deal of control over the price of the currency.
This control can have some scary repercussions. For example, it can lead to greater fluctuations in the price of FDUSD, as Binance can buy or sell the currency in large quantities to change the price (even though it is a stablecoin).
Also, it can lead to liquidity issues, as investors may not be able to buy or sell FDUSD easily if Binance is not willing to trade it. In all cases, Binance puts itself in the spotlight!