Binance’s 20% APY Deal Causes USD1 Supply Surge of $45 Million

TLDR

• USD1’s supply jumped by $45M within hours of Binance’s APY promotion.
• Binance’s 20% APY offer drove rapid expansion in USD1’s circulating supply.
• USD1’s market cap hit $2.79B after Binance’s high-yield promotion.
• USD1’s peg remained stable despite the $45M supply surge.

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A recent promotion from Binance has led to a significant increase in the supply of USD1, a stablecoin backed by World Liberty Financial. The promotion, offering up to 20% annual percentage yield (APY) on USD1 flexible earn products, caused a surge of $45 million in the stablecoin’s circulating supply. This move brings USD1’s market capitalization to over $2.79 billion.

Binance 20% APY Promotion Triggers USD1 Supply Surge

Binance’s 20% APY promotion for USD1 tokens went live at noon on December 24, 2025. The flexible earn product, which is capped at $50,000 per user, attracted a significant number of participants. Within hours of the announcement, the circulating supply of USD1 increased by over 45.6 million tokens, a sharp rise in comparison to its prior steady supply.

The promotion is valid until January 24, 2026, and only the first eligible participants will access the highest yields. As demand surged for the high-yield offering, a corresponding increase in USD1 issuance occurred, highlighting how promotions can influence stablecoin supply in the short term.

Market Data Shows Limited Price Volatility Despite Supply Increase

CoinGecko data reveals that despite the surge in USD1 supply, its price remained stable, maintaining a peg near $1. The stablecoin traded within a narrow range of $0.998 to $1.00 during the period.

USD1’s market cap surpassed $2.79 billion, and its 24-hour trading volume surged above $1.39 billion, signaling active market participation. The rise in USD1’s circulating supply didn’t disrupt its stability, which is often a concern for users during periods of rapid supply growth.

While stablecoins are designed to maintain price stability, a sudden surge in supply can sometimes cause short-term price fluctuations. However, in this case, USD1’s ability to retain its peg despite an influx of new tokens points to market confidence in its stability.

Background of USD1 and Its Issuer

USD1 is a stablecoin issued by World Liberty Financial, a project that has drawn attention due to its association with the Trump family. Launched in early 2025, the stablecoin has quickly grown to become one of the top 50 cryptocurrencies by market capitalization. Unlike algorithmic stablecoins, USD1 uses a fixed peg structure to maintain its $1 value.

While details around the reserves backing USD1 remain closely scrutinized, the stablecoin has steadily expanded its presence in the market. The recent surge in supply underscores the importance of yield-driven incentives in the cryptocurrency space, especially for stablecoins like USD1 that offer low price risk and relatively stable returns.

Yield Incentives and Stablecoin Supply Dynamics

The USD1 supply increase linked to Binance’s APY promotion mirrors a broader trend within the cryptocurrency market. High-yield promotions have become a common method for exchanges to attract liquidity, with stablecoins being the primary beneficiaries. Given that stablecoins are typically less volatile than other digital assets, they are ideal candidates for yield-focused products.

However, analysts warn that such supply increases may not be sustainable. Once the promotion ends, demand for the high-yield offerings may taper off, leading to a possible slowdown in the circulation of USD1. How USD1’s supply behaves after the promotion ends will depend on user retention and the overall demand for the stablecoin.

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