• FDUSD, a USD-backed stablecoin issued by First Digital Labs, recorded 5 million in hourly trade volumes on the day of its listing.
• FDUSD briefly traded at a premium to Tether [USDT], reflecting greater demand for the newly-listed asset.
• Binance’s zero fee trading program contributed to the soaring volume of FDUSD and is looking to promote other stablecoins due to the phasing-out stage of Binance USD [BUSD].
FDUSD Makes Impressive Start After Listing On Binance
FDUSD, a USD-backed stablecoin issued by Hong Kong-based First Digital Labs, made an impressive start after getting listed on the Binance exchange earlier this week. According to digital assets data provider Kaiko, FDUSD traded at a premium to world’s largest stablecoin, Tether [USDT] , briefly on 28 July, reflecting greater demand for the newly-listed asset. The USD-backed stablecoin started with a bang, recording 5 million in hourly trade volumes on the day of the listing.
Binance Zero Fee Promotion Contributes To Soaring Volume
The success of FDUSD could be attributed to Binance’s now popular zero fee trading program with all spot trading pairs, including FDUSD/USDT becoming exempt from maker and taker fees. This was likely responsible for driving up interest in the new coin and led it to record 5 million in hourly trade volumes on launch day. Since then however, its peg stabilized at $1.00 per data from CoinMarketCap .
Binance Looks Beyond BUSD
Binance’s aggressive backing of newer stablecoins should be seen in light of its phasing out of Binance USD [BUSD]. It has attempted to distance itself from BUSD and is looking to promote other coins such as TrueUSD (TUSD), which has seen its market cap triple since its launch this year according to Glassnode.
Correcting Market Imbalance
The success of TUSD and FDUSD is crucial in correcting current market conditions where USTD accounts for 66% market share due largely due to USDC’s decline.
Overall it appears that First Digital Labs‘ decision to list their coin on Binance paid off as they managed to achieve higher than expected volumes thanks largely due their promotional strategy which waived off fees for spot trading pairs involving their coin resulting in higher trader interest in their product compared too other coins available through Binances exchange platform . Additionally, with TSDU’s success being replicated by FDSU it will help correct current market imbalances where USTD dominates the marketshare currently .