USD1 is currently the 4th largest stablecoin by trading volume, with 98% of its supply concentrated on the BNB Chain, which largely explains its rapid growth. The stablecoin has seen a surge in adoption on BNB Chain due to factors like zero gas fees, low transaction costs, and a strong DeFi ecosystem, making BNB Chain an ideal platform for scaling USD1.
This concentration on BNB Chain has driven USD1's transfer volume to over $10 billion within 10 days of its Binance listing, reflecting significant peer-to-peer activity and institutional interest.
The growth of USD1 is also linked to its backing by World Liberty Financial, a project with ties to the Trump family, and its use in major institutional deals such as a $2 billion investment into Binance by MGX. While USD1 is available on Ethereum and Tron networks, most of its market activity and supply remain on BNB Chain, reinforcing the chain’s role as the primary infrastructure for this stablecoin.
In summary, the pivot to BNB Chain has been a key driver behind USD1's rapid rise, making it a strong example of how leveraging BNB Chain's infrastructure can bring mass adoption and growth for stablecoins.