USD1 Stablecoin: Explosive Growth Makes it Seventh-Largest Globally
Have you been following the latest developments in the stablecoin market? The **USD1 stablecoin**, linked to President Donald Trump, has made a remarkable entry, quickly climbing the ranks to become the world’s seventh-largest stablecoin by market capitalization.
Understanding the USD1 Stablecoin’s Rapid Rise
Launched just a couple of months ago by World Liberty Financial (WLFI), the **USD1 stablecoin** started with a modest supply. However, its growth trajectory has been anything but modest. It has surged past several established stablecoins in a short period.
Here’s a quick look at its growth compared to some others:
- Started with ~$3.5 million supply in March.
- Reached ~$128 million market cap before a recent spike.
- Jumped dramatically to over $2.2 billion at the time of writing.
This rapid expansion places USD1 ahead of stablecoins like First Digital USD (FDUSD), PayPal USD (PYUSD), and Tether Gold (XAUT) in terms of market value.
How Does USD1’s Stablecoin Market Cap Compare?
While USD1’s ascent is impressive, its current **stablecoin market cap** of around $2.2 billion still trails significantly behind the giants in the space. Tether’s USDT boasts a market cap near $149 billion, and USDC is around $61 billion. USD1 is making its mark, but it has a long way to go to challenge the top positions.
Comparing market caps (approximate values at time of source data):
| Stablecoin | Market Cap |
|---|---|
| USDT | $149 billion |
| USDC | $61 billion |
| USD1 | $2.2 billion |
| FDUSD | Below $2.2 billion |
| PYUSD | Below $2.2 billion |
The Role of BNB Chain in USD1 Issuance
A key factor in USD1’s distribution is its primary network. The **BNB Chain**, supported by Binance, is the dominant platform for USD1 issuance. Data shows that the vast majority of USD1 supply, over 99%, exists on the BNB Chain (as BEP-20 tokens).
Contrast this with the Ethereum-based version (ERC-20), which accounts for a much smaller fraction of the total supply. This heavy reliance on BNB Chain highlights the network’s role in facilitating USD1’s expansion.
Timing of the Market Spike and the Trump Crypto Connection
The significant jump in USD1’s market cap occurred sharply in late April, rising from $128 million to $2.1 billion within just two days. This spike happened shortly before a notable announcement: Eric Trump mentioned that Abu Dhabi-based firm MGX planned to use USD1 for a $2 billion investment into Binance. This timing fueled discussions around the **Trump crypto** connection and its potential influence on market movements, although both Trump and Binance have previously denied formal links or deals.
Major Exchange Adoption: HTX Exchange Among Early Listings
As USD1’s market cap surged, several centralized exchanges (CEXs) began listing the stablecoin. **HTX exchange**, associated with Tron founder Justin Sun, was one of the first major platforms to announce support for USD1, offering zero-fee withdrawals on the BEP-20 network.
While USD1 is also available on decentralized exchanges like PancakeSwap and Uniswap, the listing on CEXs like HTX provides broader accessibility and liquidity for traders interested in the stablecoin.
Where are USD1 Investors Coming From?
Interestingly, reports suggest that a significant portion of investment in WLFI, the entity behind USD1, originates from outside the United States. Polls and reports indicate that investors from Europe, Asia, and Latin America might constitute a large majority of the investor base. This aligns with observations regarding the holders of Trump-branded memecoins, many of whom reportedly reside abroad.
Concluding Thoughts: USD1’s Position in the Stablecoin Landscape
The rapid rise of the **USD1 stablecoin** to become the seventh-largest globally is a notable event in the cryptocurrency market. Driven heavily by issuance on the **BNB Chain** and gaining traction with listings on platforms like **HTX exchange**, USD1’s growth trajectory has been steep. While its **stablecoin market cap** is still far from the leaders, its quick ascent, coupled with its association with **Trump crypto** discussions and a potentially international investor base, positions it as a stablecoin to watch in the evolving digital asset space.
