- The supply of TUSD has increased by 52% from June 12.
- The market cap of TUSD has surged by more than $1 billion over the last six days and currently sits at $3.14 billion.
- There are reports that Binance may be behind the $1 billion TUSD injection.
- The recent TUSD minting could also have been manipulated by whales or insiders who want to create a false sense of optimism or FOMO in the market.
Bitcoin (BTC) price’s recent uptick has taken crypto investor by surprise – this, however, was a sweet, much awaited pump. While keeping a track of the recent crypto market pump, you may have heard that TUSD, one of the most popular stablecoins and it’s sudden correlation with Bitcoin.
Did you also know that TUSD’s supply increased by a whopping 52% on June 16?
It turns out that the supply of certain top stablecoins like USDC, DAI, and BUSD appear to be decreasing, while that of TrueUSD is on the rise.
The bearish wave that has plagued the market over the last two years has caused the global crypto market cap and that of the stablecoins to drop remarkably.
However, TUSD’s market cap has experienced a surge of more than $1 billion over the last six days and currently sits at $3.14 billion.
This means that TUSD’s market cap has moved up significantly, along with its supply, from around $2 billion on 15 June to where it now sits at more than $3 billion.
There are indications, however, that Binance is behind this $1 billion TUSD injection.
In this article, we will take a dive into why TUSD’s rising market cap and supply may be a great improvement for the crypto market’s situation, and how this might impact the price of BTC and other cryptocurrencies.
Why Is TUSD’s Supply Rise Such A Big Deal?
From the chart below, the rise in TUSD’s market cap is evident, as the stablecoin’s valuation rose from $2 billion on 12 June, to $3.1 billion at the time of writing.
To understand what it means for the market when a stablecoin’s supply increases, we might have to refer to this tweet from Arkham.
According to the tweet, Arkham says that when customers transfer real-world USD to Circle or Tether, the number of stablecoins will expand as a result.
Stablecoins are then created by the provider and credited to the customer in custody, where they may be withdrawn on-chain.
This means that a whopping $1 billion has somehow found its way into the crypto market and data shows that Binance (and possibly the crypto Billionaire, Justin Sun) may be behind this
Notably, Binance is also the largest holder of TrueUSD, with 389,561,743 TrueUSD coins at its primary address.
Binance also owns five of the top 10 addresses with the greatest TrueUSD holdings.
Binance and TUSD
Binance’s TUSD holdings account for 5.26% of the exchange’s $52.45 billion portfolio, according to Nansen.ai statistics.
In recent news, Binance also said on Wednesday, that it will extend its zero-fee trading promotion to all trueUSD trading pairs beginning June 30.
The move indicates Binance’s interest in expanding TrueUSD trading on its platform.
There are also reports that Justin Sun, the founder of Tron may have been behind this, but the issuer has so far denied all allegations.
How Did We Find Out About The $1 Billion Injection?
The first reports came from Ki Young Ju, the CEO of CryptoQuant, in a now-deleted tweet.
He tweeted on June 20th that he noticed a huge amount of TUSD being minted on Ethereum. Similar to what Arkham said, Ki Young Ju also mentioned that this could indicate a large inflow of fiat money into the crypto market.
There is also a correlation between Bitcoin’s sudden bullishness over the last few days and TUSD’s surge.
Overall, the consensus is that Bitcoin may be expecting a big pump soon.
However, analysts have also warned that the recent TUSD minting could be manipulated by whales or insiders who want to create a false sense of optimism or FOMO (fear of missing out) in the market. They advised traders and investors to be careful and not blindly follow the hype.
How Has The Market Reacted To The News?
The news of the $1 billion injection of TUSD into the market caused a lot of excitement and speculation among crypto enthusiasts and traders.
There was even a tweet report from WhaleAlert on Twitter, stating that 6825 BTC were transferred from Kraken, into an unknown wallet
Many expect that these bullish waves will boost the price of BTC and other cryptocurrencies, as more liquidity and demand enters the market.
However, the actual impact of the news on the market remains to be seen.
And only time will tell if Bitcoin breaks through the $30,000 resistance it currently sits at.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.