USD1 Supply Jumps $45M After Binance 20% APY Promotion

The circulating supply of USD1 rose sharply on December 24 after Binance rolled out a high-yield promotion. Data from CoinGecko shows that more than 45.6 million USD1 tokens entered circulation within a few hours of the announcement. The sudden increase pushed USD1’s total market capitalization above $2.79 billion. The move highlights how yield-driven incentives can rapidly influence stablecoin supply dynamics.

Binance Promotion Triggers Rapid Supply Expansion

Binance launched a USD1 booster program offering up to 20% annual percentage yield. The promotion applies to flexible earn products, capped at $50,000 per user. Only the first eligible participants can access the highest rates. The program began at midday local time and will run until January 24, 2026.

According to CoinGecko data, after Binance launched the 20% APY promotion for up to $50k USD1 per user at noon today, the supply of USD1 surged by over 45.6 million tokens within a few hours, bringing its total market cap to over $2.79 billion. USD1 is a stablecoin launched by… pic.twitter.com/31qHAZ8MAr

— Wu Blockchain (@WuBlockchain) December 24, 2025

Shortly after launch, on-chain and market data reflected a sharp rise in USD1 issuance. Before the announcement, the USD1 supply had remained relatively stable. After the promotion went live, supply expanded quickly, indicating fresh minting or rapid inflows tied to demand for yield.

Market Data Shows Immediate Impact

CoinGecko data shows USD1 trading close to its $1 peg throughout the period. The stablecoin’s 24-hour trading volume climbed above $1.39 billion, signaling active participation. At the same time, circulating and total supply both stood near 2.79 billion tokens. It has no maximum supply cap, allowing issuance to scale with demand. Price volatility remained limited. USD1 traded within a narrow range between $0.998 and $1.00. This suggests the supply increase did not disrupt its peg in the short term.

Background on USD1 Issuer

USD1 is issued by World Liberty Financial, a project that has drawn attention due to its backing linked to the Trump family. The stablecoin launched earlier in 2025 and has steadily climbed into the top 50 cryptocurrencies by market capitalization. Unlike algorithmic stablecoins, USD1 maintains a fixed peg structure. However, details around reserves and issuance mechanics remain closely watched by market participants, especially during periods of rapid supply growth. The latest expansion places USD1 among the larger dollar-pegged tokens in circulation. Though it remains well below market leaders such as USDT and USDC.

Yield Incentives Drive Stablecoin Behavior

The USD1 episode underscores a broader trend in crypto markets. Exchanges increasingly use high-yield promotions to attract liquidity. Stablecoins often respond fastest, given their low price risk. However, analysts note that such supply surges can be temporary. Once promotions end, demand may normalize, and circulation growth can slow or reverse.

Currently, the data shows a clear link between Binance’s APY offer and USD1 supply growth. Whether the increased circulation persists will depend on user retention after the promotion period ends. In summary, USD1’s $45 million supply jump reflects how exchange incentives continue to shape stablecoin flows. As yield opportunities shift, so does capital.