Trump-Backed USD1 Surpasses USDC With 337% Volume Surge

On June 29, 2025, the Trump family-backed stablecoin USD1 achieved a significant milestone by surpassing USDC in 24-hour trading volume, reaching $3.37 billion. This development positions USD1 as the second most used stablecoin globally, trailing only USDT.

This surge in trading volume can be attributed to substantial interest from institutional players, such as Abu Dhabi's MGX, and the integration of USD1 with decentralized finance (DeFi) platforms like Euler Finance and Lista. These strategic engagements have enhanced USD1's utility within the ecosystem, contributing to its rapid growth. Senator Elizabeth Warren has expressed concerns about USD1's large transactions with foreign partners, highlighting the need for stringent scrutiny and transparency.

USD1's success is also bolstered by the powerful sponsorship from Donald Trump and his family's earnings from WLFI token sales. The stablecoin's trading activity was predominantly seen on PancakeSwap V3, reflecting its growing presence in the market. Audits and airdrops have further indicated an evolving approach towards credibility and expansion, with the community witnessing enhanced activity around the stablecoin. However, the controversial nature surrounding USD1's association with the Trump family may contribute to market caution among retail traders.

Senator Elizabeth Warren has criticized USD1, describing it as a product of "shady crypto deals" with the UAE and raising concerns about its use as a shadow banking tool. This criticism underscores the need for greater transparency and regulatory oversight to ensure the stablecoin's long-term sustainability.

USD1, currently priced at $1.00, exhibits a market cap commanding 0.07% dominance. Its 24-hour trading volume stands at a significant level, with slight price fluctuations over three months. The stablecoin's ongoing integration into DeFi protocols and stable price movements, despite high trading activity, demonstrate its resilience in a competitive market sector. Historical trends suggest that USD1 may continue gaining traction, although regulatory concerns could influence its long-term sustainability.

Insights from research predict ongoing technological advancements and regulatory discussions that could impact USD1's wider adoption. The stablecoin's volume-to-market-cap ratio indicates a potential for further leverage across regions through existing partnerships. However, regulatory concerns and the need for greater transparency remain critical factors that could influence USD1's future growth and sustainability.