World Liberty’s USD1 stablecoin sheds $400M in market cap in two weeks

World Liberty Financial’s USD1 stablecoin saw its market cap decrease more than $400 million over two weeks of large redemptions on Ethereum and BNB Chain.

World Liberty Financial’s USD1 stablecoin has shed over $400 million in market capitalization over the past two weeks, driven by large redemptions on Ethereum and BNB Chain. 

On Monday, CoinGecko data showed USD1’s market capitalization at about $4.02 billion, down from $4.43 billion on Oct. 6. That’s a decline of approximately $401 million, or 9.1%. World Liberty Financial’s proof-of-reserves dashboard separately showed approximately $4.01 billion in reserves.

The decline extends a period of concentrated redemptions on Ethereum and BNB Chain, according to blockchain research firm Onchain Benchmark. The researchers found that nearly $200 million in BNB Chain redemptions originated from a single unidentified address, although they could not establish who controlled the funds or why they were redeemed.

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