TUSD depegs from $1 as stablecoin notes $56 million in outflows on Binance

TrueUSD, also known as TUSD, is issued by TrustToken and became the first stablecoin of 2024 to witness a considerable depegging. The USD-backed cryptocurrency fell victim to mass selling by whale addresses, resulting in an unnatural move in assets.

TUSD depegs due to whales

TUSD fell by 1.42% to trade at $0.985, depegging itself from the US Dollar. Stablecoins tend to witness such a situation at moments of increased volatility, which happens either due to broader market cues or an incident occurring that is related to the token or the company behind it.

TUSD/USD 1-day chart

This includes sudden whale selling, which is what happened with TUSD. According to Binance, the stablecoin noted outflows amounting to $56 million following a lack of TUSD mining in one of its latest Launchpools, a method of raising funds for crypto ventures in which investors deposit tokens into a liquidity pool, in return for earning interest. 

The outflows were the actions of whale addresses and other large wallet holders, which is also reflected on-chain. In the span of 24 hours, about $59 million worth of transactions were registered, the majority of which belonged to the Binance outflows.

TUSD whale outflows

This led to the depegging of TUSD as the stablecoin fell from $1 to $0.986, following consistent minor declines in the last two weeks. This is the second noticeable depeg in the case of TUSD in the last two months, as back in November 2023, the stablecoin had fallen to $0.988.

Furthermore, the overall 1.42% decline also resulted in TrueUSD losing its spot as the fourth biggest stablecoin to First Digital USD (FDUSD), as the latter now has a market capitalization of $2.02 billion.