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Trueusd price prediction: Can TUSD hold off BUSD charge?

By Peter Henn

11:16, 21 September 2022

TUSD
TUSD is a stablecoin, but can it maintain its peg? Photo: Shutterstock

Making any sort of trueusd price prediction might seem like a bit of a fool’s errand, since it is a stablecoin. Nevertheless, there are still some interesting features in terms of what trueusd (TUSD) does, so let’s see what we can find out about this cryptocurrency. 

Before we get going, it is important to point out that trueusd’s performance over recent days as of the time of writing (21 September 2022) has been somewhat shaky. It has struggled to stay at $1, although, in general terms, the fluctuations that it has been experiencing have been quite small. There have also been some delistings from crypto exchanges in recent weeks, with the main beneficiary appearing to be the Binance USD (BUSD) stablecoin. 

Stablecoins explained

The idea behind stablecoins is a reflection of the incredible volatility of many cryptocurrencies. Because prices can fall and rise substantially in a small space of time, many people who might otherwise like the idea of a crypto are put off by the volatility. On the other hand, there are many issues that crypto enthusiasts have with a traditional, fiat currency.  For instance, there are potential concerns about privacy, or the lack of privacy, surrounding traditional currencies. There are also some people who feel frustrated by what they see as a collective reliance on centralised financial institutions such as banks and regulators, while there are worries about the billions of people who do not have bank accounts not being able to access financila services. The speed of fiat transactions is something else that comes in for frequent criticism, as well as high fees charged to those who need to send money internationally. These issues are usually not a problem when using cryptocurrencies.

Stablecoins serve as hoped-for compromise. The idea is that users have the stability of traditional fiat, with the privacy, flexibility, theoretical low cost and speed associated with crypto.

There are a great many stablecoins, but the most common fiat currency for them to be pegged to is the US dollar. As its name suggests, trueusd is pegged to the dollar, so, at least in theory, it should be worth $1 at any time, making it, hopefully, rather easy to make a trueusd crypto price prediction.

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What is TUSD?

Trueusd is backed by a reserve, meaning, at least in theory, every single TUSD should be able to be exchanged for a dollar. This means it is rather different to algorithmic stablecoins, which are designed to be backed by, as the name suggests, an algorithm. These types of stablecoins achieved notoriety earlier in 2021, when the UST algorithmic stablecoin became depegged, causing the associated LUNA cryptocurrency to collapse and bringing about a significant market crash. TUSD can be minted, held as a potential hedge against volatility, and traded on exchanges. Holders can also vault the coin, meaning they can stake, farm or mine TUSD to gain rewards.  

The crypto’s whitepaper says: “We view stablecoins as a critical piece of infrastructure for the continued growth of the blockchain industry. Even larger than the role that tokenised currencies will have in growing the blockchain ecosystem, is the capability they have to improve the existing financial system. Tokenised fiat currencies have the capability to create several orders of magnitude improvements to the existing financial system by abstracting away layers of fees, improving the speed and time to cash delivery.”

TUSD is based on the Ethereum (ETH) blockchain, which means that, technically speaking, we should not be talking about such things as a trueusd price prediction. Nevertheless, the accepted term is stablecoin for the sort of crypto that TUSD is, so hopefully things will not get too confusing. 

DOGE/USD

0.12 Price
-6.350% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

ETH/USD

3,117.15 Price
-7.590% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

SOL/USD

168.83 Price
-6.740% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.2652

XRP/USD

0.61 Price
-4.110% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

TUSD was set up in 2018 by the TrustCoin organisation, led by crypto entrepreneur Rafael Cosman.

TUSD price historyTUSD price history from launch to present - Credit: CoinMarketCap

TUSD price history and recent news

Lookig at the trueusd price history, the crypto has spent most of its existence at $1, but there have been times when it has moved away from its peg. It reached a high of $1.0852 on 21 May 2018, while on 12 March 2020 it was worth $1.0442. The day after that, it fell to its all-time low of $0.9179. Since then, it has been worth $1, more or less, although there have been some fluctuations and, on 21 September 2021, it was worth about $0.9998, almost, but not quite, at the dollar. At that time, there were 1.09 billion TUSD in circulation, out of a maximum supply of just under 1.23 billion. This gave it a market capitalisation of around $1.09bn, making it the 45th largest crypto, and the fifth largest stablecoin, by that metric. 

TUSD has recently become less available than it had been previously. This is because, on 5 September 2022, the Binance (BNB) crypto exchange, in effect, removed TUSD from its platform, replacing TUSD with its own native BUSD stablecoin. People transferring TUSD, along with fellow stablecoins USDC and USDP, onto Binance will see their cryptos switched to BUSD. Holders with TUSD on the exchange will, however, be able to withdraw in TUSD. The news was followed by the announcement that the Indian crypto exchange WazirX would also stop users trading in TUSD. 

Trueusd price prediction

The trueusd price prediction for 2022 is the same as the trueusd price prediction for 2025 and beyond, in theory: as a stablecoin, its value ought, by definition, to always be $1. However, crypto price predictions very often end up being wrong, even for stablecoins. 

DigitalCoinPrice has a TUSD price prediction which says that the crypto will rise slightly to $1.01 in October, and stay there for the foreseeable future, with that price serving as the trueusd price prediction for 2030 and beyond.

When considering a TUSD stablecoin price prediction, it is important to keep in mind that cryptocurrency markets remain extremely volatile, making it difficult to accurately predict what a coin or token’s price will be in a few hours, and even harder to give long-term estimates, even for a crypto that is designed to stay at the same price.. As such, analysts and algorithm-based forecasters can and do get their predictions wrong.

If you are considering investing in cryptocurrency coins and tokens, we recommend that you always do your own research. Look at the latest market trends, news, technical and fundamental analysis, and expert opinion before making any investment decision. Keep in mind that past performance is no guarantee of future returns. Never trade with money that you cannot afford to lose.

FAQs

Is trueusd a good investment?

It is hard to say. It depends on whether it can maintain its peg to the dollar and, following the announcement of its delisting on Binance and WazirX, how useful it will keep itself. 

Remember, you should always carry out your own thorough research before making an investment. Even high market cap cryptocurrencies have proved vulnerable to the current bear markets. So investors should be prepared to make losses and never purchase more than they can afford to lose.

Will trueusd go up or down?

Hopefully not and, if it does, not by too much. Since the crypto is designed to have a stable price, if it does go up too far, something will have gone badly wrong. 

In volatile cryptocurrency markets, it is important to do your own research on a coin or token to determine if it is a good fit for your investment portfolio. Whether TUSD is a suitable investment for you depends on your risk tolerance and how much you intend to invest, among other factors. Keep in mind that past performance is no guarantee of future returns. If you cannot afford to lose it, do not risk your money.

Should I invest in trueusd?

This is a question that you will have to answer for yourself. Before you do so, however, you will need to conduct your own research and never invest more money than you can afford to lose because prices will go down as well as up.

Markets in this article

BNB/USD
Binance Coin / USD
573.02 USD
-13.82 -2.380%
ETH/USD
Ethereum / USD
3117.15 USD
-256.07 -7.590%
LUNA2/USD
LUNA2.0 to USD
0.3936 USD
-0.0331 -7.940%

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