TUSD Coin Struggles as Tether Reigns Supreme

By: Eliza Bennet

Recent events have undermined the stability of the trueUSD (TUSD) stablecoin, making the token's future uncertain. Conversely, the USDT stablecoin issued by Tether has experienced substantial growth, with its market share ballooning to an extraordinary 71% despite links to cybercrime in Southeast Asia.

The wild volatility of TUSD has seen it fall below its $1 peg. Investors have been offloading the coin with sell orders exceeding $450 million compared to $296 million in buy orders. Chainlink data shows the price of TUSD trading at roughly $0.985. Meanwhile, alternative stablecoins such as Circle's USD Coin (USDC) and DAI remain more stable and thus are more popular among traders. Some circles point to the elimination of TUSD mining in Binance's latest pool as a possible reason for the sales.

Tether's market cap has now reached a record $95 billion, revealing an increase of 40% in USDT supply over the past year. The surge in dominance is thought to be due, in part, to Tether's proactive stance against criminal activity, having frozen linked wallets and recovered over $435 million in illicit funds.

However, the stablecoin market threatens to become significantly turbid, as concerns over both TUSD's volatility and potential links to money laundering activities associated with Tether.