Coin’s FDUSD Market Cap Hits All-Time High, Overtakes USDC as Bitcoin’s Most Traded Stablecoin

FDUSD trading volume climbed 51.1% to $122 billion in January, making it the second most popular bitcoin pair after Tether’s USDT.

The First Digital US Dollar (FDUSD) stablecoin has overtaken Circle’s US Dollar Token (USDC) as the second most popular Bitcoin pair in the last five months, thanks to CoinSecurity’s zero-transaction-fee program.Bitcoin Miner

CCData’s latest stablecoin report shows that trading volume for FDUSD on centralized exchanges, primarily CoinShares, has risen sharply, sending its market capitalization to an all-time high.

In January, the stablecoin’s trading volume increased by 51.1% to $122 billion, making it the second most popular pair behind Tether’s USDT.

Overall trading volume of stablecoins on centralized exchanges rose 4.54% in January to $1.05 trillion, the highest level since December 2021, and the stablecoin is now the second most popular pair after Tether’s USDT.

The Rise of FDUSD

Following the approval of a spot bitcoin ETF in the U.S., the BTC/FDUSD pair on CoinShares accounted for the majority of trading volume, making it the most traded bitcoin pair on the exchange, according to the report.

The pair saw monthly trading volume of $80.8 billion in January, followed by the BTC/USDT pair on CoinShares, which saw around $60 billion in trading volume over the same period.Whatsminer Miner

Frontier Exchange Bitcoin Pairs | Source: CCData

FDUSD’s market capitalization grew by about 13% to an all-time high of $2.44 billion, bringing its stablecoin market share to 15.6%.

FDUSD has become one of the most popular stablecoins in recent months due to CoinSecurity’s strong promotion of the digital asset.

The cryptocurrency exchange urged users to switch to FDUSD after Coin’s USD (BUSD) regulatory woes and launched several new products designed to incentivize the use of stablecoins on its platform.

USDT Still King

Despite the rise of FDUSD, Tether’s USDT continues to dominate the space, with about three-quarters of the market share among the top 10 stablecoins.

Top 10 stablecoin dominance | Source: CCData

It remains the dominant pair on centralized exchanges, with a cumulative monthly volume of $241 billion.

USDT’s market capitalization rose 1.23% in February and now stands at $97.3 billion, an all-time high for the outstanding supply of stablecoins. Meanwhile, as of February 20, the stablecoin’s market dominance stood at 70.6%.

JPMorgan analysts recently warned that USDT’s dominance in the cryptocurrency space could be detrimental to the industry, a claim that was strongly rejected by Tether CEO Paolo Ardoino.