USD1 Stablecoin Jumps to $2.1B After Big Investment Deal

Airdrop Is Live CaryptosHeadlines Media Has Launched Its Native Token CHT. Airdrop Is Live For Everyone, Claim Instant 5000 CHT Tokens Worth Of $50 USDT. Join the Airdrop at the official website, CryptosHeadlinesToken.com USD1 stablecoin, which recently sparked political debate, is growing fast. The stablecoin was issued by World Liberty Financial (WLFI), a crypto firm partially owned by former President Donald Trump and his family.As reported by The Block, on-chain analytics revealed that the total amount of USD1 in circulation grew from $130 million to over $2.1 billion in just a few days. This sharp rise has caught the attention of the broader crypto community.USD1 Stablecoin Sees Sudden Surge In SupplyThis huge increase happened between April 27 and April 30. By April 28 alone, over $720 million worth of USD1 was created, according to data from CoinGecko, CoinMarketCap, and DeFiLlama. The sharp rise is believed to be driven by a large investment deal that has attracted strong interest from traders and investors.The increase came from several large mints on the Binance Smart Chain, where USD1 is primarily active. According to BscScan, some mints were between 50 million and 99 million USD1 each. This suggests that large players are moving quickly to create the stablecoin.World Liberty Financial officially launched USD1 in April after teasing the launch in March. The crypto project revealed that U.S. dollars back every USD1 coin, short-term U.S. government bonds, and other safe financial assets. This is meant to help users trust the coin and know it is secure.WLFI also revealed plans to airdrop a small amount of USD1 to holders of its WLFI token. This is meant to reward users and test the token’s ability to be distributed on-chain.Abu Dhabi Firm Boosts USD1 With Big DealOn May 1, an Abu Dhabi-based investment company from MGX made a major announcement. The company revealed its plan to use USD1 to complete a $2 billion investment deal with Binance, one of the world’s biggest crypto exchanges. A few days after this news, the USD1 market supply skyrocketed. Brandon Kae, a research analyst at The Block, said this major deal is the likely reason behind the sudden growth in USD1 supply. This shows that some large investors are ready to use this new stablecoin in big transactions.USD1 Joins Growing Competitive Stablecoin MarketUSD1 has been gaining momentum in the crypto market despite joining a very competitive stablecoin market. The stablecoin industry is worth about $231 billion, and two digital assets, Tether (USDT) and USD Coin (USDC), control most of it. USDT has about $149 billion in supply, and USDC has around $60 billion. These two stablecoins currently comprise more than 90% of the market. This means USD1 is still much less than a minor contributor. However, because it is growing fast and has support from prominent investors, it could become a serious competitor in the future.Source link