Trading pairs with the stablecoin First Digital USD (FDUSD) accounted for 38% of the total spot trading volume on Binance, according to experts from The Block.
The figure rose by 42.6% over the month.
“It was quite expected that FDUSD would gain some popularity on Binance, considering that BTC/FDUSD trading is fee-free, and most stablecoin pairs have no fees for makers,” said Rebecca Stevens, senior analyst at The Block.
The official cessation of BUSD support by the exchange likely also prompted some users to switch to the new “stablecoin,” she added.
FDUSD was launched in June 2023 by the custodial and trust company First Digital from Hong Kong. A month later, Binance listed the asset with a zero-fee trading program.
In early August, Binance CEO Changpeng Zhao criticized USDT, calling the asset a “black box” with a “certain” level of risk. It was subsequently revealed that the exchange had converted part of its USD Coin (USDC) reserves into another stablecoin.
However, analysts at Kaiko noted at the time that the exchange did not quickly achieve popularity for FDUSD among traders, despite the fee incentives.
According to CoinGecko, the coin from First Digital has already reached fourth place in market capitalization among stablecoins. Over the past 30 days, the market supply of FDUSD has grown by 40% to approximately $2.85 billion.
Earlier, Adrian Orr, Governor of the Reserve Bank of New Zealand, called the term “stablecoin” an oxymoron.