Key Insights
- The 20% APY reward of the Binance platform led to a significant $45 million increase in the supply of USD1
- The USD1 series managed to retain the dollar peg even amid increased issuance and strong demand in the short term.
- The exchange yield promotion scheme worked well in encouraging the liquidity participation of stablecoin.
- Ethereum sell-offs as well as DeFi reallocations, indicated shifting strategies by investors regarding yield and risks.
- The regulatory reports and increasing volumes in the derivatives market indicate rising institutional participation in the cryptocurrency market.
Binance 20% APY Sparks USD1 Supply Surge in Crypto News Today
Crypto news today reports that Binance’s 20% APY promotion triggered a sharp rise in USD1 circulation. More than 45 million tokens entered supply within hours, pushing the stablecoin’s market cap above $2.79 billion while maintaining a stable dollar peg.
Binance 20% APY Sparks USD1 Supply Expansion
Binance started its 20% APY flexible earn promotion of USD1 on December 24, 2025, at noon. The campaign had a limit of USD 50,000 per individual, and it became a huge hit on Binance. The circulating supply of USD1 increased by over 45 million in a couple of hours.
Market watchers also reported that this increase in new supply came soon after the introduction of the high-yield offering. This trend highlights how exchange incentives can be key in leading to swift, stablecoin issuances. Based on data from CoinGecko, trading volume for USD1 went over $1.39 billion during this time.
On X, @WuBlockchain broke the story about how the 20% APY offered by Binance encouraged the market capitalization of USD1 past $2.79 billion within hours. The tweet showed how fast liquidity moved into the stablecoin once the promotion was up. This is another major piece of news covered today.
USD1 Maintains Peg Despite Rapid Supply Growth
However, amidst the significant increase in the supply of the stablecoin, the peg of USD1 remained stable in the region of $1. As indicated in the trading data, the stablecoin traded between the price range of $0.998 and $1.00.
Stablecoins are sometimes in the spotlight whenever there is a sudden change in supply. However, looking deeper into the performance of the USD1, it can be observed that the demand side matched the newly introduced supply within the promotion period.
This has been referred to in crypto news today, as traders waited to see if it would bring volatility. However, USD1 has been trading with minimal volatility, further cementing its place in the large market stablecoin market.
Arthur Hayes Rotates ETH Into DeFi Tokens
There was also intrigue in the Ethereum market with BitMEX co-founder Arthur Hayes transferring 682ETH worth $2 million to Binance. The move was in line with the overall sale of ETH in the past week, which stood at 1,871ETH worth $5.53 million.
Referring to the on-chain analysis data posted on Twitter by @lookonchain, the transactions indicated that Hayes sold his ETH and re-invested in DeFi tokens. Some of the tokens he purchased include 1.22 million ENA tokens, 137,117 PENDLE tokens, and 132,730 ETHFI tokens.
These developments were also closely tracked in the news today, as market participants reacted to what this may mean for Ethereum sentiment. ETH remained below the $3,000 mark, and the DeFi tokens based on yield approaches gained greater focus.
SEC Advances Nasdaq Bitcoin Index Options Review
In the regulatory trends, the U.S. Securities and Exchange Commission started moving towards examining the listing of Bitcoin Index options by Nasdaq. The SEC also started examining FLEX options linked to the BlackRock Bitcoin ETF (IBIT) and the iShares Bitcoin Premium Income ETF.
The options tied to IBIT reported more than 6.7 million in open interest, making them one of the top ten derivatives in US markets. Such figures indicate increased institutional interest in crypto-associated financial instruments.
Bitcoin hovered around $86,987, with lower daily volume traded. The market analyst @coinbureau tweeted that $234.9 million worth of liquidations took place within a day, with long positions constituting the major losses. Such events contributed to making headlines in the crypto news today.
Market Bets and Investor Positioning
Prediction markets also provided information regarding the long-term sentiment. Traders at Polymarket predicted that Bitcoin would beat gold by 42% in 2026, while the S&P 500 had a 25% chance and gold had a 32% chance.
Nonetheless, market uncertainty was observable in markets. @CryptoNobler reported that “A wallet belonging to a Trump insider sold significant crypto assets just before the Federal Reserve report. The wallet has also benefited from drastic market drops in the past.”
While these updates, along with the surge in USD1 supplies, demonstrated a shift in investor sentiment, traders continued positioning themselves based upon yield differentials, regulations, and macro-economic news that are often highlighted in the news reels today.
https://x.com/CryptoNobler/status/2003792352998240280?s=20
Final Thoughts
The increase in USD1 supply demonstrates that incentives for exchange can increase stablecoin supply quickly while maintaining exchange rate stability. On the other hand, ETH rotation, review of regulations, and liquidations indicate that adjustments are taking place in crypto markets. This and other factors form the landscape that is currently being discussed under crypto news headlines today.
