In a remarkable rise, World Liberty Financial’s USD1 stablecoin has shattered expectations by crossing the $5 billion market cap milestone in less than a year. Positioned as a dollar-backed digital currency tailored for institutional use, USD1 seems to be taking the spotlight away from the declining TRUMP meme coin.
USD1: A Game-Changer for Stablecoins
Launched less than a year ago, USD1 has gained traction primarily due to its integration with Binance and World Liberty Financial’s application to form a federally supervised trust bank. If approved, this trust bank—named World Liberty Trust Company—would oversee USD1’s issuance, redemption, and reserve management under tight federal oversight.
According to Donald Trump Jr., co-founder of World Liberty Financial, the rapid growth of USD1 proves the importance of infrastructure and institutional adoption. In a recent tweet, he stated, “USD1 just reached a $5B market cap. Built in America, designed for real-world scale, and adopted by serious institutions.”
TRUMP Meme Coin Sinks Amid Growing Concerns
While USD1 enjoys the limelight, the TRUMP meme coin is seeing a sharp decline, falling over 93% from its peak value of $75 to just $4.66. Once a high-flying token launched during Donald Trump’s second inauguration, the coin’s hype has significantly diminished, leaving investors and lawmakers wary of its risks.
Analysts, including Narek Gevorgyan from CoinStats, attribute the TRUMP coin’s downfall to insider sell-offs, lack of utility, and concerns about its centralized supply. The Trump Organization is reported to control 80% of the token’s supply, raising fears of future market manipulation.
Regulatory Scrutiny Looms Over USD1
Despite its rapid success, USD1 has not been without controversy. Last month, U.S. lawmakers, including Senator Elizabeth Warren, voiced concerns about its potential misuse. Warren highlighted trading activity on decentralized exchanges, such as PancakeSwap, where blockchain data suggested links to laundered funds from North Korea. Such concerns have prompted calls for tighter oversight of stablecoins.
Nonetheless, the market remains optimistic about USD1, especially as the broader stablecoin sector continues to grow. With the passage of the GENIUS Act providing a clear regulatory framework for stablecoins, the total U.S. dollar stablecoin supply has reached $312 billion, showcasing the rising demand for secure, fiat-backed cryptocurrencies.
Adding USD1 to Your Portfolio
For those interested in venturing into dollar-backed stablecoins, USD1 could serve as a reliable option. Its institutional-grade features and adherence to federal standards make it a safer alternative compared to speculative meme coins. Platforms like Binance have already integrated USD1, making it accessible for global users.
If you’re exploring options to diversify your crypto portfolio, consider checking out the USD1 stablecoin and its benefits.
