TrueUSD trading at a discounted price, Buy? - CryptoCrazeNews

TrueUSD trading at a discounted price, Buy?

TrueUSD trading at a discounted price, Buy?

TrueUSD trading at a discounted price, Buy?

In the realm of cryptocurrency, everyone from retailers to giant investors recognizes the value of stablecoins (US dollar-pegged). Recently, on January 23, 2024, an on-chain analytics firm, Kaiko, made a post on X (previously Twitter), stating that TrueUSD (TUSD) is still trading at a significant discount compared to other stablecoins in this rapidly evolving cryptocurrency landscape.

TUSD loses its dollar-pegged nature, the reason

According to Kaiko’s post on X, the fifth-largest stablecoin, TUSD losing its stability means losing its dollar-pegged nature, raising concerns. As of now, the value of TUSD has plummeted to $0.97. The value of TUSD has been unstable since January 15, 2023, and since then, its price has been continuously varying.

For any stablecoin, it is important to maintain its dollar-pegged nature, as investors or retailers in the cryptocurrency industry see these stablecoins as a dollar, allowing them to easily buy and sell cryptocurrency, despite dealing with other cryptocurrencies like Bitcoin, Ethereum, Solana, or others.

However, the popularity of TrueUSD (TUSD) does not match that of the world’s biggest stablecoins like USDT and USDC. Mostly, in the stablecoin market, investors and retailers prefer using USDT and USDC over TUSD.

According to CoinMarketCap, TUSD is the first digital asset with live on-chain attestations by independent third-party institutions and is backed 1:1 with the U.S. dollar (USD). However, it is currently not 1:1 dollar-pegged. TUSD is listed on more than 100 cryptocurrency exchanges worldwide.

The major reason behind the fall of TUSD is Binance’s shift in focus to some other stablecoin. Earlier, TUSD gained popularity because Binance incorporated it into its trading promotion.

With its price instability, investors are leaving this token due to several reasons such as scams, rug pulls, and exploitation, similar to TERRAUSD, another stablecoin that dropped by over 90%. However, its 24-hour volume has also surged by over 30%, suggesting that investors are taking advantage of its discounted price.

TrueUSD and other Cryptocurrency’s price movement 

Currently, TrueUSD is trading near $0.97, which is supposed to trade near $0.99. However, due to a lack of liquidity and stability in the team, it is trading at discounted prices. In the last 24 hours, it also experienced a 0.8% downside momentum. If we look at TUSD over a longer period, in the last 30 days, it experienced over 2.4% of downside momentum. Such fluctuations are not favorable for a stablecoin in this cryptocurrency market. 

Despite all these challenges faced by TUSD, the overall cryptocurrency market is also in disarray, with major cryptocurrencies like Bitcoin, Ethereum, Solana, and many others continuously falling.

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