TUSD Powers Bitcoin Rally: Uncovering the Influence of Stablecoins

• Recent data suggests that TUSD has played a significant role in Bitcoin’s recent rally.
• CryptoViz data shows that the supply of TUSD has significantly increased on three occasions since 2018, coinciding with Bitcoin rallies.
• Binance dominates the distribution of TUSD and its trading volume has surpassed that of USDT for BTC spot trading pairs.

The Influence of TUSD on Bitcoin’s Rally

Recent data suggests that TUSD has played an important role in the recent surge in Bitcoin’s price. Analysis from CryptoViz reveals that the circulating supply of TUSD has seen substantial increases on three distinct occasions since 2018, which have coincided with subsequent Bitcoin rallies.

Tron and Ethereum Dominance

Tron currently accounts for 76.45% of the total supply of TUSD, followed by Ethereum with a 22.5% share. A closer look at the distribution reveals Binance as having an overwhelming dominance when it comes to exchanges.

Rising Popularity of Trading Pairs

When analyzing the trading volumes for top three BTC spot trading pairs, it was observed that BTC/TUSD trading volume had surpassed that of BTC/USDT, showing growing dominance for TUSD as a pair.

Similar Growth Trajectory to USDT

Ki Young Ju, CEO of CryptoQuant suggested that there is a similar growth trajectory between USDT and TUSD and while it is possible to off-ramp from USDT to other cryptocurrencies across various exchanges, expanding supplies may continue to impact markets.

Traders Becoming Bullish

With 31000 BTC options expiring soon , traders are becoming increasingly bullish as evidenced by Put Call Ratio set at 0.73 and max pain point set at $27000 along with notional value being substantially higher than usual.