Wednesday, December 31, 2025

Binance Unveils $1 Promotion Fueling Market Cap Growth

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According to CoinGecko data, shortly after the exchange launched a 20% APY promotion for up to $50,000 per user in USD1 at noon today, the supply of USD1 surged by over 45.6 million tokens within hours.

This sudden increase pushed the stablecoin’s market capitalization above $2.79 billion, highlighting the impact of high-yield incentives on crypto adoption and token circulation.

USD1 and the Trump-Backed Connection

USD1 is a stablecoin issued by World Liberty Financial, a project backed by the Trump family. Stablecoins are digital currencies pegged to a reserve asset, typically the U.S. dollar, and are widely used to facilitate trading, lending, and payments within the crypto ecosystem. The Binance promotion allowed users to earn 20% annual interest on their USD1 holdings, making it one of the highest-yield offers currently available in the market.

Consider a retail investor who deposits the maximum $50,000 into the USD1 program. At the advertised APY, that deposit could yield an enticing $10,000 in a year, assuming the rate holds. This dynamic explains the sharp uptick in token supply, as both new and existing holders looked to take advantage of the lucrative promotion.

The USD1 surge offers an important lesson about the power of incentives in crypto markets. While high-yield promotions can be attractive, they necessitate careful consideration of associated risks, liquidity, and overall market behavior. Observing these trends provides key insights into how supply, demand, and promotions interact in digital asset markets.

More About USD1

The World Liberty Financial’s (WLF) stablecoin has made a noticeable impact in the market, with its RAVE/USD1 daily spot volume reaching over $375 million just ten days after its launch. This indicates strong trading activity and growing adoption.

The platform has highlighted that WLF’s stablecoin serves as a key liquidity pair across selected token listings, including RAVE/USD1. This functionality supports both ongoing trading and enhances market depth. The early momentum exhibited by USD1 reflects substantial investor interest and its practical utility in facilitating token swaps on Aster.



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Disclaimer

The information provided by Altcoin Buzz is not financial advice. It is intended solely for educational, entertainment, and informational purposes. Any opinions or strategies shared are those of the writer/reviewers, and their risk tolerance may differ from yours. We are not liable for any losses you may incur from investments related to the information given. Bitcoin and other cryptocurrencies are high-risk assets; therefore, conduct thorough due diligence. Copyright Altcoin Buzz Pte Ltd.

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