Rapid Growth in Market Capitalization of FDUSD
In a striking development within the stablecoin sector, FDUSD has experienced impressive growth in its market capitalization, adding $1 billion since the beginning of 2024. As of January 21, 2024, the market valuation of the first digital USD (FDUSD) has escalated to $2.61 billion, positioning it as the fourth-largest stablecoin by market cap. This notable increase from a $1.6 billion market cap at the year’s start, as tracked by coingecko.com, underscores FDUSD’s rapid ascent in the stablecoin hierarchy.
FDUSD’s Supply Expansion and Holder Distribution
FDUSD’s growth is further highlighted by a significant 45.7% increase in its supply over the past 30 days. The stablecoin, available in ERC20 and BNB chain variants, has expanded its supply to 2.614 billion FDUSD. The ERC20 version on Ethereum currently accounts for 2.564 billion FDUSD, held by 452 individual holders. In contrast, the BNB chain version, with a supply of 49,380,678 FDUSD, is held by 3,545 distinct wallets.
Binance plays a dominant role in both versions of FDUSD. For the BNB-based FDUSD, Binance holds the top three wallets, controlling a substantial 82.1% of the FDUSD minted on the BNB chain. Similarly, in the Ethereum variant, Binance maintains dominance over the top three wallets, holding 97.48% of the total ERC20 FDUSD supply. The top 100 holders of the BNB-minted FDUSD collectively possess 99.01% of these coins.
Trading Volume and Centralized Exchange Dominance
Despite limited onchain activity for both FDUSD tokens, the stablecoin has achieved the sixth largest trading volume on a recent Sunday, indicating that most of FDUSD’s transactions occur off-chain and through order books. The ERC20 version has seen 2,896 transactions, while the BNB version has processed 60,747 transactions. This trend suggests that FDUSD’s presence is predominantly through centralized exchanges rather than decentralized finance (defi) protocols, a pattern differentiating it from many other stablecoins in the market.
The rapid rise of FDUSD in the stablecoin market indicates the evolving landscape of digital currencies. Its ascent to the top four stablecoins by market capitalization, alongside the significant control by centralized entities like Binance, highlights the diverse strategies and structures within the stablecoin domain. FDUSD’s growth trajectory and distribution dynamics offer a unique perspective on the role of stablecoins in both centralized and decentralized financial ecosystems.