FDUSD stablecoin market cap grew 51% to $394 million over last 30 days

The supply of the First Digital USD (FDUSD) stablecoin has increased by 51% over the past 30 days, approaching a market capitalization of $394 million. With this market cap, FDUSD +0.48% ranks as the eleventh largest dollar-based stablecoin, as per data from CoinGecko.

First Digital Group, based in Hong Kong, launched FDUSD in June of this year. Shortly after its introduction, the stablecoin was listed by Binance, the largest centralized exchange by daily trading volume. Binance has been instrumental in the adoption of FDUSD, listing the token on July 26 and eliminating trading fees for conversions to other stablecoins such as USDT +0.071% and TUSD +0.25% .

Recently, Binance announced it will discontinue support for BUSD -0.20% , a stablecoin previously widely used on its platform, in favor of FDUSD. Starting Sept. 15, the exchange said it will cease using BUSD in investment products like “Auto Invest,” where it will be automatically replaced by FDUSD. Additionally, the exchange is offering a 6% annualized percentage yield on FDUSD deposits via its Simple Earn product for a temporary promotional period of two weeks that ends on Sept. 15.

Despite FDUSD’s growing supply, primarily driven by activity on Binance, its adoption in the wider cryptocurrency and DeFi sectors is still limited. Data from Nansen shows that most FDUSD holdings are concentrated on Binance, with minimal presence in the DeFi space.

“FDUSD has more than 90% of its supply held on Binance with no real presence in DeFi or any onchain applications at this point in time. Nothing really exciting at this point in time yet," Nansen analyst Martin Lee said in a statement shared with The Block.