FDUSD Market Cap Surges 51% in 30 Days, Nearing Top 10 Stablecoins
Following Binance's preference after BUSD's decline, the market capitalization of FDUSD continues to soar. However, its reliance on a CEX and lack of on-chain presence have left the community somewhat skeptical about this stablecoin.
FDUSD Market Cap Surges 51% in 30 Days, Nearing Top 10 Stablecoins
While the rest of the market sees limited fluctuations, the stablecoin sector remains a hotbed of competition among various contenders.
Simultaneously with Binance's move to phase out BUSD, the exchange has shown favoritism toward the new stablecoin, First Digital USD (FDUSD).
As a result, the market capitalization of FDUSD has steadily grown, gradually claiming the market share that BUSD is losing.
Market capitalization of FDUSD since its launch. Source: CoinMarketCap
According to CoinGecko data, FDUSD's market capitalization has surged by 51% over the past 30 days, reaching $394 million. This places the emerging stablecoin at 11th in the market, capturing a 0.32% market share.
Top stablecoins by market capitalization. Source: CoinGecko
Stablecoin market share. Source: DefiLlama
Of course, Tether (USDT) dominates the leaderboard with a market capitalization of $82.8 billion, more than three times higher than the second-ranked USDC.
Despite persistent transparency concerns, Tether appears to lead the stablecoin race, consistently receiving positive news such as over $1 billion in profit in Q2 2023, ranking as the 11th largest BTC holder and the 22nd largest holder of US Treasury bonds.
Meanwhile, USDC is striving for a comeback by expanding to six new blockchains including Optimism, Base, Polygon PoS, Polkadot, NEAR, and Cosmos in September and October to enhance its utility.
Returning to FDUSD, despite ranking 11th in market cap, nearly all of its supply is concentrated on Binance with no visible on-chain presence. Martin Lee, an analyst at Nansen, commented:
"Over 90% of FDUSD supply is held on Binance with no real presence in DeFi or any on-chain applications. There isn't much excitement around it at this time."
Complete dependence on a centralized exchange undermines FDUSD's credibility significantly. The community finds it challenging to trust or utilize a stablecoin that can only be used on CEX platforms, rendering it nearly ineffective for withdrawals to wallets for use in DEX or DeFi lending.
Therefore, the issuer of FDUSD needs to enhance its utility significantly to adapt to the dynamic global cryptocurrency market landscape.
