Over the past week, the stablecoin trueusd (TUSD) experienced a notable decrease in its supply. As of March 19, 2024, the circulation was approximately 1.1 billion TUSD, which then plummeted to just 612 million.
Supply Slash Sees TUSD Fall From Top 5 Stablecoin Rankings to 8th Position
Previously ranked among the top five dollar-pegged cryptocurrencies by market capitalization, TUSD now finds itself in the eighth spot. Its supply has been consistently diminishing, with three-month statistics indicating a starting point of around 2.4 billion. As recently as March 19, the supply had fallen to 1.1 billion, leading to the current count of 612,455,467 TUSD as of March 23, 2024.
The distribution of TUSD is mainly on Ethereum, with roughly 389 million TUSD, and on the Tron blockchain, with about 189 million. Additionally, 2.98 million TUSD are circulating on Avalanche, while the BNB Chain hosts approximately 30.03 million. The decrease in TUSD’s supply comes on the heels of its challenges in maintaining U.S. dollar parity at the beginning of the year.
Since recovering its peg, the coin has continued to see a gradual reduction in supply. TUSD’s transparency efforts are highlighted by its Verinumus real-time balance dashboard, which details the assets backing the tokens. Currently, the dashboard audit shows $501 million in collateral assets held in First Digital Trust Limited, over $126 million in USD cash, and zero U.S. Treasury notes. The audit reveals that the collateral is overseen and managed by Techteryx across depositories in Hong Kong, Switzerland, and the Bahamas.
This trend of decreasing supply is not unique to TUSD, as other once-prominent stablecoins like Binance’s BUSD have also receded significantly from leading positions. Similarly, Paxos’ USDP and Gemini’s GUSD have experienced notable reductions in their supplies over the last year. Meanwhile, newer entrants such as FDUSD and USDE have risen to become the fourth and fifth largest stablecoins, overtaking several former frontrunners in the realm of dollar-pegged crypto assets.
What do you think about TUSD’s supply drop? Share your thoughts and opinions about this subject in the comments section below.
