FDUSD trading pairs have reached a new milestone just weeks before all BUSD balances will be converted to FDUSD.
The crypto industry is known for having a plethora of options for investors, and this applies to stablecoins as well. While stablecoins have been controversial in the past, they continue to attract a committed user base, and new options are succeeding all the time. Take FDUSD, a stablecoin developed by First Digital Labs. The token has just scored a major coup on Binance, as its trading pairs have comprised a high percentage of spot trading on the exchange.
FDUSD on the Rise
This new development is significant in many ways. Notably, this percentage represents an all-time new high in terms of Binance trading shares. It means, essentially, that FDUSD is so high in demand that it comprised 38% of total spot trading volume on Binance as of February 12, 2024.
This speaks to the popularity of the relatively newer stablecoin on the scene. When most of us think of stablecoins, our minds go to USDT, USDC, or any other token that has been on the scene for a long time. But the state of stablecoins, at least on Binance, looks to be changing.
Currently, the exchange is winding down support for BUSD, as was announced late last year. According to an official statement, Binance users can redeem their BUSD until February 29, 2024. After this time, their tokens will be automatically converted to FDUSD.
This decision came in the aftermath of the New York Department of Financial Services (NYDFS) ordering Paxos, BUSD’s issuer, to stop their activities. Binance was facing several legal issues at the time, including being sued by the CFTC and the SEC. This put a damper on its stablecoin activities and forced it to look for alternatives.
This has, however, been good news for FDUSD as many Binance users have flocked to it as a substitute for BUSD. And once the remaining BUSD balances are converted to it by February 29, it should see even more use.
Time-wise, this has also been a beneficial period for FDUSD, which is issued by FD121 Ltd. The crypto sector is gearing up for several price spikes this year, partially thanks to Bitcoin’s spot ETF approval and the incoming halving. If things work out as expected, many more people will be investing in cryptocurrency, and some might use stablecoins as a bridge token or during times of volatility.
On top of this, there is the fact that BTC/FDUSD pairs are free to trade, and many other FDUSD pairs have no maker fees attached. All these will make FDUSD a hot topic in the stablecoin sector. If this continues, FDUSD could very well become one of the biggest names in the stablecoin sector.
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