Track market-moving stories before they get noisy

Renzo Protocol Controversy: ezETH Lost Peg, Airdrop Sparked Debates

The SUI ecosystem continues to capture investor attention this October, setting multiple notable new records.

While the recovery momentum of many altcoins has stalled, SUI has achieved a new all-time high (ATH) this month, reaching $2.16.

SUI Ecosystem Market Cap Exceeds $8 BillionAccording to CoinMarketCap, the SUI ecosystem’s market cap in October reached $8.54 billion. Of that, SUI’s individual market cap is around $5.38 billion, while First Digital USD (FDUSD) accounts for almost $3 billion. The daily trading volume across the ecosystem surpassed $6 billion, with most of it still dominated by SUI and FDUSD.

Read more: A Guide to the 10 Best Sui (SUI) Wallets in 2024

SUI Ecosystem Market Cap and Volume. Source: CoinMarketCap.Other projects within the SUI ecosystem, such as decentralized exchanges (DEXs), meme coins, and lending protocols, hold a smaller share. According to CoinGecko, the market capitalization of meme coins on SUI currently exceeds $296 million, marking a 170% increase from $108 million at the beginning of October.

Typically, investors who buy and hold SUI tend to reinvest in other protocols and meme coins within the ecosystem. This is similar to how the Solana ecosystem surged in popularity last year.

SUI Ranks Among Top 3 Altcoins by Netflow in the Past MonthMore data indicates promising signals for SUI’s continued appeal to investors in the final quarter of the year. Artemis data, which tracks capital flows into and out of various ecosystems, shows that SUI ranks third in altcoin netflow over the past month, behind only Ethereum and Solana.

Netflow by Chain. Source: Artemis.Looking at cross-ecosystem bridge transactions, SUI accounts for over 9% of the capital flow from Ethereum. These figures highlight the growing activity within the SUI network, reflecting the ongoing adoption and demand among users.

SUI Dominance Rises 270%, Reaches New High of 0.27%SUI dominance (SUI.D), which measures SUI’s share of the total market cap, has seen a significant rise. A higher dominance indicates that SUI is becoming a preferred choice among investors.

Read more: Everything You Need to Know About the Sui Blockchain

SUI Dominance. Source: TradingView.In just the past two months, SUI.D has surged 270%, hitting a new high of 0.27%. Although it has now retraced to 0.26%. This comes at a time when most other altcoins are seeing declines in market cap share while Bitcoin dominance remains high at over 56%.

“SUI is moving exactly like SOL before the massive pump,” Investor CryptoGoos predicted.

Through technical analysis, many investors are optimistic that SUI’s price could follow a similar pattern to that of SOL. However, a recent BeInCrypto analysis indicates that SUI may face significant corrections under the pressure of profit-taking from early investors.

This is because the price has increased by nearly 120% in the past 30 days. In such a scenario, investors are bound to book some profit.

Crypto payment firm Dtcpay shifts to stablecoin-only payments model

First Digital USD (FDUSD), a multi-blockchain audited stablecoin pegged to the U.S. dollar, enhances its availability on Binance (BNB), the largest crypto exchange by trading volume and user count. Traders are invited to deposit and withdraw FDUSD paying no fees.

Solana's FDUSD listed by Binance with zero-fee promoBinance (BNB), a dominant centralized crypto exchange, shared details of its latest stablecoin listing so far. Solana-based version of First Digital USD (FDUSD), a Hong Kong-regulated USD-pegged stable cryptocurrency, is now available for all Binancians.

Binance (BNB) stressed that the process of SOL-based FDUSD is fully completed: Users can freely deposit and withdraw the stablecoin via the Solana (SOL) blockchain and utilize it in Binance's (BNB) products.

To introduce the novel stablecoin to the Binance (BNB) audience, the platform is running a zero-fee promo campaign for FDUSD. Until April 16, 2025, 11:59 p.m. UTC, all deposit and withdrawal operations are charged with zero platform fees.

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As Binance (BNB) targets regulatory compliance, it recalled that users in EEA are not eligible for the promotion and usage of stablecoins unauthorized under the new MiCA regulatory framework for digital assets.

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As covered by U.Today previously, Binance (BNB) already expanded its stablecoin offering this year. On Jan. 10, spot trading in PHA/USDC, PLN/USDC, STEEM/USDC and USUAL/USDC pairs kicked off.

Tether unveils USDT cross-chain alternative: DetailsDespite increasing regulatory hostility, the competition in the stablecoin segment has gained steam in recent months. Tether, the issuer of the largest-ever stablecoin USDT, announced this week its new development called USDT0, a cross-chain stablecoin issued on Kraken's L2 Ink.

Introducing USDT0.@Tether_to has completely reshaped global economies and in just over a decade has become the single largest stable asset in the world at almost $140B. It fulfilled crypto’s original promise of banking the unbanked and providing critical financial… pic.twitter.com/36oZJd6F3Q

— USDT0 (@USDT0_to) January 16, 2025 USDT0 is set to merge the benefits of LayerZero's Omnichain Fungible Token standard and OP Stack, Optimism's development framework. Simply put, USDT0 streamlines operations with crypto liquidity on multiple blockchains.

Also, Ripple, a U.S. fintech giant, launched its hotly-anticipated stablecoin Ripple USD (RLUSD) on XRP Ledger and Ethereum (ETH) Dec. 17, 2024.

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As of press time, RLUSD capitalization exceeds $74 million in equivalent.

Binance moves to restrict non-MiCA compliant stablecoins for EEA users, reveals delisting timeline and conversion options ahead of March deadline.

Cryptocurrency exchange Binance will remove non-MiCA compliant stablecoins like Tether (USDT), First Digital USD (FDUSD), and DAI (DAI) from spot trading in the European Economic Area starting March 31, urging users to switch to MiCA-compliant ones like Circle’s USD Coin (USDC), Eurite (EURI) or fiat like EUR.

In a March 3 press release, Binance said that for now, non-MiCA compliant stablecoins can still be traded in spot pairs until the deadline. However, after March 31, these pairs will be fully delisted.

“Custody of non-MiCA Compliant Stablecoins will continue and you will be able to withdraw or deposit non-MiCA Compliant Stablecoins at any time.”

Binance

The update will also impact margin trading. From March 27, non-compliant margin trading pairs will be removed, and Binance will automatically convert any remaining assets to USDC. Binance urged users to convert their margin assets before the deadline to avoid liquidation risks.

To help users switch to MiCA-compliant stablecoins, Binance will offer zero-fee trading on some pairs and rewards for trading USDC or EURI. The exchange also recommends updating Binance Earn and Loan holdings to compliant stablecoins.

The update is part of Binance’s efforts to comply with Europe’s MiCA framework, which aims to establish clear regulatory guidelines for cryptocurrency markets. In July 2024, analysts at blockchain research firm Kaiko suggested that Europe’s Markets in Crypto-Assets Regulation prompted a rush among issuers to comply, benefiting Circle at the expense of its rivals.

Tether chief executive Paolo Ardoino criticized MiCA, arguing that its requirement for stablecoin issuers to hold at least 60% of reserves in E.U. bank accounts poses financial risks, as deposits exceeding €100,000 are not insured.

A stablecoin called First Digital USD (FDUSD) lost its dollar peg on Wednesday after Tron founder Justin Sun claimed that its issuer, First Digital Trust, is effectively insolvent.

The Hong Kong-based firm is currently “unable to fulfill client fund redemptions," Sun warned in a post on X, formerly known as Twitter, urging “regulators and law enforcement to take swift action to address these issues and prevent further major losses.”

First Digital Trust denied the allegation, saying on X that its stablecoin worth $2.5 billion is backed one-to-one with U.S. Treasuries. The firm described Sun’s rhetoric as part of a “smear campaign,” adding that it will pursue legal action to protect its rights and reputation.

The recent allegations by Justin Sun against First Digital Trust are completely false.

This dispute is with TUSD and not with $FDUSD. First Digital is completely solvent.

Every dollar backing $FDUSD is completely, secure, safe and accounted for with US backed T-Bills. The…

— First Digital (@FirstDigitalHQ) April 2, 2025

FDUSD—which is prominently used by top crypto exchange Binance after it dropped support for BUSD in 2023—plunged as low as $0.95 and was recently changing hands around $0.96, according to the crypto data provider CoinGecko. It had recovered to $0.97 before Sun doubled down.

Sun said on X that First Digital Trust’s insolvency is a “factual statement,” urging the company’s business partners to sever ties “as soon as possible to protect your assets.”

The crypto billionaire recently helped a firm called Techteryx avoid insolvency, CoinDesk reported on Wednesday, citing Hong Kong court documents.

The company, which acquired the stablecoin TrueUSD in 2020, reportedly needed a $456 million bailout from Sun after its reserves were allegedly misappropriated by First Digital Trust.

First Digital Trust (FDT) is, in fact, already insolvent. This is a factual statement, devoid of any emotion. If you have any ties with them, please sever them as soon as possible to protect your assets. As for what consequences its founder, Vincent Chok, will face for his…

— H.E. Justin Sun 🍌 (@justinsuntron) April 2, 2025

First Digital Trust manages TrueUSD’s reserves, and the company diverted cash to a Dubai-based entity instead of an investment vehicle registered in the Cayman Islands, the publication reported, citing court documents prepared by U.S. law firm Cahill Gordon & Reindel.

When Techteryx tried to redeem funds between mid-2022 and early 2023, the company received “little or no funds back” from the Cayman Islands-based fund, and it allegedly defaulted on payments and failed to fulfill redemption requests, according to the court documents.

First Digital Trust has not had the chance to defend itself in court, the firm noted on X.

Despite its small market cap, the disruption centered around FDUSD is “a big deal,“ Coinbase's Head of Product, Conor Grogan, said on X Wednesday. Historically, the stablecoin has been popular among traders on Binance, with the exchange holding 94% of FDUSD in circulation.

Edited by Andrew Hayward

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A prominent stablecoin depegged from the US dollar Wednesday morning after it was alleged that its Hong Kong-based issuer was bankrupt

In a new thread on the social media platform X, crypto billionaire and Tron (TRX) founder Justin Sun urged his followers to “take immediate action” to protect any assets they held in FDUSD, a stablecoin managed by First Digital Trust (FDT).

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Sun also called for regulators to step in and take action to prevent further losses and save Hong Kong’s reputation as a financial power.

“First Digital Trust (FDT) is effectively insolvent and unable to fulfill client fund redemptions. I strongly recommend that users take immediate action to secure their assets.

There are significant loopholes in both the trust licensing process in Hong Kong and the internal risk management of its financial system.

I urge regulators and law enforcement to take swift action to address these issues and prevent further major losses. Hong Kong’s reputation as a global financial center is at stake, and similar financial fraud incidents must never happen again.”

FDUSD dipped to about $0.949 earlier in the day but has since recovered and is trading for $0.982 at time of writing, a decrease of 1.27% during the last 24 hours.

In response, the FDUSD has denied Sun’s claims and will pursue legal action to defend its reputation.

“The recent allegations by Justin Sun against First Digital Trust are completely false.

This dispute is with TUSD and not with FDUSD. First Digital is completely solvent.

Every dollar backing FDUSD is completely, secure, safe and accounted for with US-backed T-Bills. The exact ISIN numbers of all of the reserves of FDUSD are set out in our attestation report and clearly accounted for.

This is a typical Justin Sun smear campaign to try to attack a competitor to his business. As we told the reporter at CoinDesk, we have not yet had the opportunity to defend ourselves and instead of letting the TUSD matter be dealt with in court, Justin has instead resorted to a coordinated social media effort to try to damage FDUSD as a business competitor.

FDT will pursue legal action to protect its rights and reputation.”

The US House Financial Services Committee voted 32-17 to pass the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act of 2025, aimed at stablecoin regulation. 

This legislative milestone comes amid growing activity in the stablecoin market. Competition is heating up as major traditional financial institutions prepare to enter the space.

STABLE Act Passes Committee Vote Chairman French Hill and Representative  Bryan Steil spearheaded the legislation (H.R. 2392). It seeks to establish a robust framework for stablecoin issuance, mandating 1:1 reserve backing, monthly audits, and AML requirements. 

“This legislation is a foundational step toward securing the future of financial payments in the United States and solidifying the dollar’s continued dominance as a world reserve currency,” Representative Steil remarked.

The bill’s passage saw bipartisan support, with six Democrats voting in favor. Notably, this comes shortly after the US Senate Committee on Banking, Housing, and Urban Affairs greenlit the GENIUS Act. The bill passed in a bipartisan 18-6 vote. 

“The bills await debate time on the floor and a vote in their respective chambers,” Journalist and Host of Crypto In America, Eleanor Terrett, noted.

According to Terrett, efforts are underway to align the two bills closely over the next few weeks. The aim is to address differences between the bills. Aligning them will make it easier to proceed without creating additional complications.

“If they can get them to be in relatively the same place on their own, it will avoid having to set up a so-called conference committee which is formed so members from both chambers can negotiate to create a final version of the bill everyone agrees on,” she added.

Stablecoin Competition Heats Up, but Are There Signs of a Purge?The drive for legislation occurs alongside rising activity in the stablecoin market. Global players are joining the fray.

For instance, in Japan, Sumitomo Mitsui Banking Corporation (SMBC) and major entities have signed a Memorandum of Understanding (MoU). The MoU initiates joint discussions on the potential use of stablecoins for future commercialization. 

“This Agreement will see SMBC, Fireblocks, Ava Labs, and TIS collaborate to develop a framework for stablecoin issuance and circulation, including exploring key technical, regulatory, and market infrastructure requirements both in Japan and further afield. This Joint Discussion will not only focus on pilot projects but will aim to concretely define use cases for ongoing business applications,” the notice read.

In addition, Bank of America’s CEO previously revealed plans to launch a stablecoin once proper regulation is in place. Notably, BeInCrypto reported last month that the Office of the Comptroller of the Currency (OCC) had granted national banks and federal savings associations permission to provide crypto custody and certain stablecoin services.

That’s not all. The state of Wyoming is set to launch its own stablecoin, WYST, in July. Fidelity has also announced similar plans. Moreover, President Trump-backed World Liberty Financial officially launched its USD1 stablecoin in late March. This highlights continued interest in stablecoin adoption across both private and public sectors.

Meanwhile, Ripple announced the integration of its Ripple USD (RLUSD) into Ripple Payments. Changpeng Zhao (CZ), former CEO of Binance, reacted to the development on X.

“Stablecoin war, I mean healthy competition, just getting started,” CZ said.

As competition intensifies, the stablecoin market is also facing growing pains. Despite new entrants gaining traction, some players face heightened scrutiny. 

Justin Sun, founder of Tron (TRX), recently accused First Digital Trust of insolvency. Following Sun’s allegations, First Digital USD (FDUSD) temporarily depegged.

The market’s future may hinge on the survival of only the most compliant and resilient stablecoins. This leads to a potential “purge” where weaker players fail to meet the increasing regulatory and market demands.

First Digital redeems $26M after FDUSD depeg, dismisses Sun insolvency claims

Trump-backed USD1 is now the seventh-largest stablecoin worldwide

First Digital Labs has launched FDUSD on Arbitrum, Ethereum’s largest Layer-2 network, marking the stablecoin’s latest expansion and further strengthening its cross-chain presence.

The launch is designed to offer users access to low-cost, high-speed transactions while positioning First Digital USD (FDUSD) as a core stablecoin for decentralized finance, spanning five blockchains and multiple regional markets..

Already deployed on Ethereum, BNB Chain, Sui, and Solana, FDUSD’s expansion to Arbitrum represents a strategic step toward addressing Ethereum’s congestion and throughput challenges. This comes at a time of rising institutional demand for stablecoins that are secure, compliant, and integrated across multiple blockchains.

“Stablecoins will play an increasingly central role in driving global capital market liquidity over the next five years,” said Vincent Chok, CEO of First Digital. “FDUSD’s native integration with Arbitrum eliminates bridging complexities, boosts trade efficiency and strengthens our leadership in the DeFi ecosystem.”

Ryan De Souza, APAC Partnerships Lead at Offchain Labs, which supports Arbitrum, added that FDUSD’s native deployment “is not only enhancing scalability and reducing costs but also making digital finance more accessible, secure, and aligned with the evolving needs of both institutions and everyday users.”

Native integration brings security, scale, and seamless access Unlike bridged tokens that often introduce security vulnerabilities, FDUSD’s native deployment on Arbitrum provides a safer and more seamless experience. It also enables greater liquidity within Arbitrum’s DeFi ecosystem and supports everyday applications like remittances and cross-border payments through near-instant settlements.

Beginning on Friday, users can access FDUSD liquidity through Camelot, one of Arbitrum’s leading DeFi platforms. Institutional clients can also mint FDUSD directly on-chain by opening an account with First Digital, streamlining access to digital dollar liquidity across use cases such as trading, lending, and settlement.