Kaiko, a Paris-based crypto market data provider, reported that the stablecoin FDUSD saw a “notable” increase in its market share on Binance, the largest crypto exchange in the world by trading volume, at the end of July. Kaiko shared this statement in an August 19 post on its website.
“The stablecoin FDUSD’s market share on Binance hit an all-time high of 39% at the end of July, reversing a downward trend that had persisted for the past three months,” said , Research Team. “The increase is notable as the exchange had reintroduced zero taker fees for FDUSD trading pairs for its regular and VIP-1 users back in April. A closer examination of tick-trade data suggests that this surge in FDUSD volume was primarily driven by increased buying in Binance’s four main FDUSD-denominated pairs, as well as a rotation into other stablecoins, particularly Tether’s USDT. This is particularly interesting as Bitcoin saw strong selling on Binance’s USDT markets during the same period.”
According to Kaiko’s release on August 19, First Digital USD (FDUSD) is a Hong Kong-regulated stablecoin launched in June 2023. It began trading exclusively on Binance’s platform shortly after its launch with “zero maker and taker fees.” Within one year, FDUSD became the largest stablecoin on the market, averaging $6.5 billion in volume, nearly six times that of the next largest stablecoin, USDC.
In April 2024, Binance reintroduced zero taker fees for FDUSD “trading pairs for its regular and VIP-1 users,” according to Kaiko. As a result, FDUSD’s market share on Binance reached an all-time high of 39% by the end of July, reversing a three-month declining trend.
Currently, Tether is the largest and most popular stablecoin in the digital token space with a volume nearing $66.5 billion. According to Tether’s website, it is the most widely adopted stablecoin and “a trailblazer in the digital use of traditional currencies,” supporting “growing ventures and innovation throughout the blockchain space.” Tether is built on multiple blockchains.
Elliptic released information stating that the European Union’s new Markets in Crypto-Assets regulations took effect on June 30 for all stablecoin issuers. This regulation ushers in “a new era of regulatory oversight for innovators in the Crypto space.” The rule mandates that “issuers must now obtain approval from relevant members of state authorities before offering their tokens within the EU or when offering stablecoins pegged to the euro or other member state currency.”
Kaiko is a cryptocurrency data and analytics company founded in 2014 by Pascal Gauthier. According to their website, Kaiko “is a leading source of cryptocurrency market data, analytics, indices, and research,” providing businesses with industrial-grade and regulatory-compliant data. Their mission is to bridge traditional finance with blockchain technology and allow businesses access to both centralized and decentralized data. The current CEO is Ambre Soubiran who has been leading since 2016.
