Key facts
- USD1 stablecoin market cap decreased by $401 million in two weeks.
- Redemptions were concentrated on Ethereum and BNB Chain.
- A single unidentified address on BNB Chain accounted for nearly $200 million in redemptions.
- USD1 maintained its dollar peg throughout the redemption period.
World Liberty Financial's USD1 stablecoin has experienced a significant drop in market capitalization, losing over $400 million in the past two weeks. This decline is attributed to substantial redemptions on the Ethereum and BNB Chain networks. Data from CoinGecko shows USD1's market cap fell to approximately $4.02 billion on Monday, down from $4.43 billion on Oct. 6, representing a 9.1% decrease. World Liberty Financial's proof-of-reserves dashboard indicated reserves of about $4.01 billion. Blockchain research firm Onchain Benchmark noted that nearly $200 million in redemptions on BNB Chain originated from a single unidentified address. Despite these redemptions, USD1 has maintained its dollar peg, trading within a narrow range. On Ethereum, USD1 supply contracted more sharply than other major stablecoins like USDe, USDC, and USDT during the review period.