TrueUSD (TUSD), a stablecoin associated with Justin Sun, has experienced a dramatic collapse, losing nearly 80% of its market capitalization after the major cryptocurrency exchange Binance delisted several of its trading pairs. This development has raised significant concerns about the stability and future of TUSD.

Issued by the TrustToken platform, now operating under the name Archblock, TrueUSD's value plunged by 78.9% according to analysts at CCData. This steep decline followed Binance's decision to remove multiple TUSD trading pairs, a move that severely impacted the token's liquidity and market confidence.

The latest stablecoin research report from CCData highlights a sharp drop in the monthly trading volume for TUSD pairs on centralized exchanges, which has fallen to $569 million. This figure represents a staggering decline of nearly 99% since May 2023, indicating a drastic reduction in trading activity and investor interest.

Despite this setback, Binance remains the predominant exchange for TUSD trading, commanding a 68.2% market share. Following Binance are WhiteBit and BitMart, with market shares of 13.4% and 5.32%, respectively. In an effort to revive interest and adoption, the stablecoin recently launched a zero-fee trading promotion for the TUSD/TRY pair on the Bitci exchange.

In contrast to TUSD's struggles, the overall stablecoin market has shown signs of recovery. Analysts observed that in May, the total market value of stablecoins increased by 0.63% to $161 billion, marking the eighth consecutive month of growth. This upward trend represents the highest level since April 2022, reflecting a broader market recovery following the collapse of TerraUSD and a prolonged seventeen-month downtrend.

Launched in March 2018 by TrustToken co-founders Rafael Cosman, Stephen Kade, Jai An, and Tory Reiss, TrueUSD was designed to be a transparent and legally protected stablecoin, fully collateralized by the U.S. dollar to ensure its value stability. However, the recent delisting by Binance, coupled with issues involving custodian Prime Trust, has led TUSD to lose its peg to the U.S. dollar multiple times, casting doubt on the stablecoin's reliability and future viability.

As TUSD navigates these turbulent waters, the cryptocurrency community will be closely monitoring its performance and the steps taken to restore confidence in this once-promising stablecoin.