Close Menu
Crypto Valley Journal
    Facebook X (Twitter) Instagram
    Crypto Valley Journal
    • Hot Topics
      • News
      • Minds
    • Focus
      • Background
      • Blockchain
      • Legal & Compliance
      • Non-Fungible Token (NFTs)
    • Investing
      • Markets
      • Financial Products
      • Decentralized Finance (DeFi)
      • Exchange overview
    • Education
      • Basics
      • Glossary
      • Politicians on crypto
    • Statistics
      • Bitcoin-ETF-Flows
      • Ethereum-ETF-Flows
      • Crypto market data
      • On-chain data
    • Academy
      • Overview
      • Part 1: Blockchain
      • Part 2: Money
      • Part 3: Bitcoin
      • Part 4: Cryptocurrencies
      • Part 5: Decentralized Finance
      • Part 6: Investing
    • English
      • Deutsch
    Crypto Valley Journal
    You are at:Home » Markets » Market Review » FDUSD overtakes USDC with stablecoin market share
    FDUSD Stablecoin

    FDUSD overtakes USDC with stablecoin market share

    By CVJ.CH Content Partner Kaiko Research on 24. October 2023 Market Review

    A summarizing review of what has been happening at the crypto markets. A look at trending sectors, liquidity, volatility, spreads and more. The weekly report in cooperation with market data provider Kaiko.

    Bitcoin (BTC) is trading above $30k for the first time since August. Last week, a lot happened on the legal front: The SEC decided not to appeal the Grayscale decision and dropped its lawsuit against Ripple executives while the state of New York sued DCG and Gemini. Otherwise, Coinbase listed perpetual futures and Binance regained Euro access.

    Subscribe to our newsletter

    The best articles of the week, directly delivered into your mailbox.

    The impact of a false rumor

    Last week proved how one small rumor can have a huge market impact. On October 16, crypto news website Cointelegraph tweeted that a bitcoin spot ETF had been approved. This quickly caused BTC's price to rise 10% before pulling back once it became clear the news was false. Interestingly, BTC edged higher throughout the week, and crossed $30k on Friday, the first time since mid-August.

    bitcoin surges on false ETF news
    BTC Price Chart / Source: kaiko.com

    During the extreme volatility, liquidity - as measured by market depth - collapsed as price moved to an area with less liquidity and market makers were slow to refill order books. This is expected behavior; market makers want to avoid getting caught on the wrong side of a price move, so will sometimes wait on the sideline until price settles again.

    Bitcoin Depth temporarily collapses

    What's interesting is that liquidity on some exchanges was more resilient than on others. Kraken in particular saw its liquidity recover quite fast, compared with Binance and Bybit. The rumor had the biggest impact on derivatives markets, where leverage can lead to liquidations during volatility. On two of the largest exchanges - Binance and Bybit - $600mn worth of contracts were liquidated in just an hour, a 10% drop in open interest.

    BTC open interest binance and bybit

    Overall, this event gave us some insights into the state of crypto markets:

    1. Markets will be very happy should a spot ETF actually be approved.
    2. Twitter (X) still plays a big role in disseminating information that can impact markets.
    3. Crypto remains susceptible to fake news.

    What explains FDUSD's rise?

    Out of nowhere, the little-known stablecoin FDUSD went from having 0% market share on centralized exchanges to more than 16%. Its spectacular rise coincided precisely with TUSD's spectacular fall. What gives?

    The link here is Binance. TUSD is a stablecoin that had virtually no volume before Binance essentially selected it as a successor to BUSD back in March and began promoting a zero-fee BTC-TUSD pair. This caused a massive increase in TUSD's market share from <1% to a high of 23%, with virtually all volume coming from this zero-fee pair. For unclear reasons, Binance decided to stop promoting TUSD in August.

    Stablecoin market share on CEXs

    FDUSD is a new stablecoin issued by Hong Kong's First Digital and appears to now be the chosen successor to BUSD. Binance began promoting a similar zero-fee pair, causing FDUSD volumes to skyrocket. FDUSD is only listed on Binance, whereas TUSD is listed on 10+ exchanges. It remains unclear the origins of this new stablecoin and details on its issuer remain scarce.

    Circle's Euro stablecoin now leads market share

    EUR stablecoins market share

    In June of 2022, Circle launched a euro-backed stablecoin (EURC) as an alternative to its dollar-backed stablecoin USDC. For years, there were very few euro stablecoin issuers, in part due to the ECB running negative interest rates on cash deposits for over a decade. The interest rate environment has since changed and there are some new entrants, although adoption remains low. EURC has claimed the largest market share of volume on centralized exchanges relative to EURT, Tether's stablecoin, and EURS, a smaller stablecoin.

    USD va. EUR stablecoins trade volume

    The market for Euro stablecoins remains significantly smaller than for USD stablecoins. Average weekly volume for USD stablecoins was $107bn, compared with just $16mn for Euro stablecoins, showing usage still has a long way to go. However, last week the ECB announced a preparation phase for a digital euro (to note, CBDCs are very different from stablecoins), suggesting interest in some form of digital euro is growing.

    Ray Dalio’s Bridgewater Associates Minds

    Star investor Ray Dalio considers Bitcoin inferior to gold

    The EU Parliament's ECON committee has approved the legal framework for the digital euro and ordered trilogue negotiations to begin. Background

    EU Parliament approves legal framework for the digital euro

    BlackRock files its fourth S-1 amendment for the Bitcoin Premium Income ETF (BITA). A Bloomberg analyst expects a launch ahead of Goldman Sachs. Financial Products

    Launch of BlackRock’s income-generating Bitcoin ETF moves closer

    Digital finance transparency relies on Proof of Reserves, Merkle trees, MPC custody and 24/7 monitoring to verify solvency and user assets. Basics

    Transparency as the foundation of security in digital finance

    Ray Dalio’s Bridgewater Associates Minds

    Star investor Ray Dalio considers Bitcoin inferior to gold

    The EU Parliament's ECON committee has approved the legal framework for the digital euro and ordered trilogue negotiations to begin. Background

    EU Parliament approves legal framework for the digital euro

    Bitcoin forks: how are they doing?

    BTC forks (BSV, BCH) price returns YTD

    Bitcoin SV (BSV) rallied 30% last week as Binance relisted perpetual futures for the token. This rally brought the Bitcoin fork into positive territory for the year, which it broke only briefly back in July. Bitcoin Cash (BCH), the more popular Bitcoin fork, managed a 200% rally in the same month. There were few obvious catalysts for this massive appreciation other than BCH being included as one of four tokens available on EDX Markets, the institutional exchange backed by Fidelity and Citadel that launched in July. BCH's rally helped it nab the title of "most improved" in our token liquidity ranking.

    Share. Facebook Twitter LinkedIn Email Telegram WhatsApp

    About the author

    CVJ.CH Content Partner Kaiko Research
    • Website

    Kaiko is one of the leading cryptocurrency market data providers for institutional investors and enterprises. They aim to empower market participants with accurate, transparent, and actionable financial data to be leveraged for a range of market activities. Kaiko’s mission is to be the foundation of the new digital finance economy by serving as a single source for market information.

    Related Articles

    The Bitcoin price falls below USD 60,000 to its lowest level since October 2024 as Strategy, ETF buyers and retail all retreat at once.

    Crypto winter: Bitcoin price breaks below USD 60,000 again

    Bitcoin rally: US-Iran peace deal pushes Bitcoin above USD 65,000

    BlackRock files its fourth S-1 amendment for the Bitcoin Premium Income ETF (BITA). A Bloomberg analyst expects a launch ahead of Goldman Sachs.

    Launch of BlackRock’s income-generating Bitcoin ETF moves closer

    CVJ Weekly review
    27. June 2026

    Weekly review: Binance gets forced out of the EU market

    Binance withdraws its Greek MiCA license application and halts all EU crypto services from 1 July. Customers must withdraw their funds.
    26. June 2026

    Binance halts EU services after failed MiCA license

    SBI Holdings acquires Bitbank for USD 288.6 million, becoming Japan's largest crypto exchange operator by assets under management.
    25. June 2026

    SBI Holdings acquires Bitbank for USD 290 million

    twitter image button instagram image button linkedin image button youtube image button

    About Crypto Valley Journal
    About Crypto Valley Journal

    On the pulse of the movement

    • Academy
    • Contact
    • Advertising
    • About us
    • Partner
    • Imprint
    • Privacy
    • Disclaimer
    Search

    Type above and press Enter to search. Press Esc to cancel.