Significant TUSD supply increases have coincided with Bitcoin rallies on multiple occasions. TUSD’s dominance in BTC trading volume has surpassed that of USDT. TUSD Web Stream Maintains Regular Activity as Users Show Concerns.
The recent rise of Bitcoin’s [BTC] price has sparked curiosity and debate within the crypto community. While some have attributed the rally to factors such as the Blackrock ETF or a short tightening, emerging data suggests that the stablecoin TUSD may have played a role in contributing to Bitcoin’s bullish momentum.
True USD [TUSD] emerged as a prominent player on the cryptocurrency scene, attracting increased attention earlier in the year. This rise in prominence was heightened when Binance generated an impressive 130 million TUSD in a single week.
Impact of Thousands of Dollars
Data from CryptoViz revealed that the circulating supply of TUSD has experienced substantial increases of over $1 billion on just three separate occasions since 2018. These events took place in May 2021, February 2023, and June 2023.
Interestingly, after each rise, Bitcoin embarked on a rally in a relatively short period.
Currently, Tron accounts for 76.45% of the total TUSD supply, followed by Ethereum with a 22.5% share. A closer look at the distribution of TUSD supply among different exchanges highlights the overwhelming dominance of Binance.
When analyzing the trading volumes of the three major BTC spot trading pairs, an intriguing trend emerged. The trading volume of BTC/TUSD surpassed that of BTC/USDT, showing the increasing dominance of TUSD as a trading pair.
Crypto Quant CEO, Ki Young Ju, suggested that TUSD is following a similar trajectory to USDT. TUSD no longer seems to function as a direct on-ramp for converting cryptocurrency to fiat. However, it is still possible to divert TUSD to other cryptocurrencies on various exchanges.
Traders Turn Bullish
Traders are currently facing the imminent expiration of 31,000 BTC options, characterized by a Put Call ratio of 0.73, a maximum pain point set at $27,000, and a substantial notional value of $930 million, as reported by GreeksLive. These data suggest relatively higher demand for calls, indicating bullish sentiment among traders.
The maximum pain point serves as an area of interest for market participants, which can influence their trading decisions. With such significant notional value involved, the expiration of these BTC could result in increased market volatility and possible price fluctuations.
TUSD Packed with Doubts and Skepticism
In a recent update shared on June 22, TUSD assured its users that the stablecoin was not affected by the recent developments surrounding Prime Trust. According to a report from the Nevada Department of Business and Industry, Prime Trust faced a shortfall in client funds.
Amid the ongoing drama, an examination of TUSD’s net flow on CryptoQuant revealed encouraging signs of normality. The netflow showed a positive flow without notable peaks. This indicated regular activity within the stablecoin ecosystem.
Contrary to the statements made by TUSD, though, some users had a different perspective on the current state of affairs surrounding the stablecoin, considering recent developments. According to a tweet by Mike Burger, the team allegedly sent emails to their clients, informing them that the TUSD redemption was temporarily put on hold due to the Prime Trust event.
Additionally, another Twitter user, @etheraltog, provided evidence indicating that when a redemption request was submitted, the stablecoin was remitted instead. These cases raised doubts and skepticism among some users regarding the stability and transparency of TUSD in light of the current situation.
By Audy Castaneda
