World Liberty Financial Launches USD1 Stablecoin on BNB Chain, BNB Surges 3.5%

World Liberty Financial (WLFI), a decentralized finance platform based in Canada with close ties to the Trump family, has introduced its own USD1 stablecoin on the BNB Chain network. This stablecoin, pegged to the US dollar, aims to enhance stablecoin adoption and improve liquidity within the decentralized finance (DeFi) sector. Although USD1 is currently in its testing phase and not yet tradable, its deployment on the network has been confirmed by blockchain analytics firm LookOnChain, which identified interactions involving the stablecoin.

The launch of USD1 on the testnet coincides with a growing interest in stablecoins within the cryptocurrency market. Stablecoins are favored for their stable value, making them suitable for trading and payments. This move positions WLFI in line with major trends in the cryptocurrency industry, as market leaders like Tether and Circle have reported significant profits from their stablecoin issuance. Additionally, the timing of the launch aligns with discussions in Washington around the GENIUS Act, a proposed law aimed at regulating stablecoin issuance and trading.

The introduction of USD1 has already had an impact on the BNB Chain ecosystem. Following its deployment, Binance Coin (BNB) experienced a 3.5% price surge, and other tokens on the BNB Chain, such as Pancakeswap (CAKE) and Chainlink (LINK), also reported price increases. The launch of USD1 is expected to boost BNB’s utility and demand by improving liquidity and offering more use cases for assets on the BNB Network. Increased trading activity and institutional interest could drive the adoption of BNB-related assets, potentially pushing BNB closer to key milestones and strengthening its ecosystem against competitors.

In the early hours of the day, BNB exhibited range-bound behavior, fluctuating between the $619 support and $627 resistance levels. The MACD indicator facilitated a price hike twice but failed to push BNB across the resistance. Around 8:00 AM UTC, a golden cross signaled a stable price uptrend, which steadily took BNB up to $631.47, where it encountered strong resistance. Despite the RSI reporting overbought levels, BNB attempted to breach the resistance but ultimately failed, leading to a price drop. By 13:30 UTC, BNB was trading around $624.5.

At 15:45, another golden cross suggested a price hike as BNB spiked upwards, surpassing resistance and eventually finding resistance at $639. As the RSI entered the overbought zone, further upward movement was restricted, and BNB fell to find support at $633. Buying pressure built up again, but BNB was rejected by the $640 resistance. By 5:30 UTC on March 24, BNB spiked up to $644, facing strict rejection at $645 before slumping back to support at $637. As of the last update, Binance Coin was testing the $637 support.

As of the last update, the BNB price was on a downward trajectory. The MACD featured a death cross, indicating a further price drop. It appears that the $637 resistance may not hold strong, and BNB will need to regain its position in the second half of the day. If BNB bounces back strongly, a break of the $640 resistance could be possible by the following day.