The Rise of USD1 Stablecoin and Its Impact on the Market

USD1, a stablecoin backed by World Liberty Financial and supported by President Donald Trump, has quickly become the seventh-largest stablecoin globally within just two months of its launch. With a market capitalization of $2.2 billion, USD1 has outpaced competitors like FDUSD, PYUSD, and XAUT. Despite its rapid growth, USD1 still lags behind major stablecoins like USDT and USDC, which have market caps of $139 billion and $61 billion, respectively. The majority of USD1 supply is issued on Binance-backed BNB Chain, with only a small portion on the Ethereum network. The recent surge in USD1's market cap, fueled by an investment announcement from Abu Dhabi-based MGX, led to its listing on various centralized exchanges. Reports suggest that most WLFI investors are from outside the US, aligning with Trump's push for stablecoin adoption. Despite close ties between WLFI and Binance, both Trump and Binance have denied any formal agreements. Read more AI-generated news on: https://app.chaingpt.org/news