TUSD’s Supply Declines, Dropping to 8th Position Among Stablecoins
The stablecoin trueusd (TUSD) has witnessed a significant decrease in its supply over the past week. From an initial circulation of around 1.1 billion TUSD on March 19, 2024, the supply has now dropped to just 612 million.
This decline has led to TUSD falling from being ranked among the top five dollar-pegged cryptocurrencies by market capitalization to its current position at eighth. The supply has been consistently diminishing, with three-month data showing a starting point of approximately 2.4 billion TUSD.
Most of TUSD’s distribution is on the Ethereum blockchain, with approximately 389 million TUSD, followed by the Tron blockchain with around 189 million. Additionally, 2.98 million TUSD circulate on Avalanche, while the BNB Chain hosts approximately 30.03 million.
The decrease in TUSD’s supply follows the challenges it faced in maintaining parity with the U.S. dollar earlier this year. However, since recovering its peg, the coin has continued to see a gradual reduction in supply.
TUSD’s transparency efforts are evident through its Verinumus real-time balance dashboard, which provides details of the assets backing the tokens. The dashboard audit reveals over $501 million in collateral assets held in First Digital Trust Limited, more than $126 million in USD cash, and no U.S. Treasury notes. Techteryx oversees and manages the collateral across depositories in Hong Kong, Switzerland, and the Bahamas.
Interestingly, TUSD is not the only stablecoin experiencing a decrease in supply. Other well-known stablecoins like Binance’s BUSD, Paxos’ USDP, and Gemini’s GUSD have also receded from their leading positions. In contrast, newer entrants such as FDUSD and USDE have risen to become the fourth and fifth largest stablecoins, surpassing former frontrunners in the dollar-pegged crypto asset realm.
What are your thoughts on TUSD’s supply drop? Share your opinions in the comments below.