Market insights reveal that on January 15, 2024, the stablecoin TUSD deviated from its usual $1 parity, dipping to $0.979 per coin the next day. By 10:00 a.m. Eastern Time (ET) on Tuesday, it managed to recover slightly, climbing above the $0.99 mark.
TUSD Faces Unsteady Ground, Drops Under $1
Recently, TUSD experienced fluctuations, slipping below its $1 benchmark on Monday. That evening, its value lingered around $0.98, amid challenges linked to the companyβs real-time attestations. As of January 16, 2024, TUSDβs circulating supply, as displayed on their website, stands at 1.92 billion tokens.
A significant portion of TUSDβs supply is in the hands of Binance, which owns the top five ERC20 wallets. Of the total supply, only 391.99 million TUSD tokens are issued on the Ethereum blockchain, while 1.48 billion are on the Tron network. Binanceβs cold wallet holds approximately 1.4 billion of these tokens.
At 10:00 a.m. ET on Tuesday, TUSD temporarily reached $0.996 per coin. Yet, by 10:20 a.m., it fell to about $0.987. This instability has sparked considerable debate on social media, with many questioning the reasons behind TUSDβs fluctuating peg. Most of the trading activity for the coin is concentrated on Binance, with a significant portion of its volume originating from this exchange.
In the last 24 hours, TUSDβs global trade volume hit $425 million. Despite a hefty supply of 1.92 billion TUSD, its market valuation on Tuesday was slightly lower, at $1.89 billion. TUSD is now among several stablecoins that have dealt with parity issues, a trend that began with the Terra blockchain ecosystemβs collapse in May 2022.
What do you think about the issues TUSD has been facing dealing with holding its $1 peg? Share your thoughts and opinions about this subject in the comments section below.
