FDUSD, a prominent player in the stablecoin market, is experiencing a significant decline in total supply. From its peak of $4.42 billion, the supply has decreased to $1.9 billion, raising questions about its long-term trajectory in the competitive stablecoin landscape.

This decline coincides with Binance's decision to end its "zero trading fee" promotion for several pairs, including the popular BTC/FDUSD pair, at the end of April. The change in fee structure appears to have impacted trader behavior and FDUSD demand. Despite the setback, FDUSD maintains a substantial presence on Binance, accounting for 33.55% of spot trading volume in June, suggesting a degree of resilience in its user base.

The FDUSD situation highlights important considerations about growth strategies in the …