The Stablecoin Trueusd (Tusd) has lost its $ 1 PEG against the US dollar on January 16, 2024, going down to a minimum of $ 0.97, and then settles at $ 0.99.
This event is attributed to a series of factors, including the Binance focus on the Fdusd Stablecoin and the fears of increasing inflation.
Since Binance introduced Fdusd trading to Zero Commission in December 2023, users have slowly left Tusd in favor of Fdusd. The trading of the latter Stablecoin is a type of trading on the sidelines in which traders can deposit only a part of the value of their trade, this means that traders can obtain greater exposure to the market, with a minor investment.
In addition, as mentioned at the beginning, the fears of increasing inflation led some investors to sell their Stablecoin to move to other more or less risky assets
*Inflation is that economic phenomenon in which the prices of goods and services increase over time. When increasing, the value of the US dollar decreases, this means that the stablecoins anchored to the dollar forgive interest.
In the last 24 hours, there have been over 444 million dollars in Tusd sales orders against $ 301 million purchase orders, with a FLOW deficit of $ 142 million.
*Flow is an acronym for Funds Outflow and measures the amount of money that comes out of a stablecoin in this case.
The drop in Tusd (marketcap currently less than 1.9 billion dollars) can cause more volatility, as could bring greater or lesser confidence towards all Stablecoin, obviously included USDT and USDC (for the moment considered more reliable), finally it could push The authorities towards new regulations for Stablecoin as required by Blackrock before approving his BTC ETF Spot.
An alarm bell that should remind us how much the cryptocurrency sector is still highly volatile and sometimes even unpredictable.
