MEXC USD1 drive lifts futures activity

Crypto exchange MEXC has closed its first USD1 event series with more than 161,000 participants and $2.4 billion in futures trading volume from new users, underscoring how fee promotions and stablecoin-linked incentives are reshaping competition among digital asset platforms.

The campaign, which ended on May 13, centred on USD1, the dollar-pegged stablecoin associated with World Liberty Financial. MEXC positioned the initiative as part of its wider 0-fee strategy, offering users lower-cost access to spot and futures markets while using prize pools and token rewards to draw activity into a growing stablecoin ecosystem. The exchange said the event attracted 161,773 participants, with new users accounting for the $2.4 billion in futures turnover.

The figures point to the rising importance of stablecoins as trading infrastructure rather than merely as parking assets during periods of volatility. USD1 is designed to maintain a one-to-one value with the US dollar and is backed by dollar reserves and US government money market instruments. Its expansion across trading platforms has placed it among the closely watched dollar-linked tokens in a market still led by USDT and USDC but increasingly open to new issuers with strong distribution channels.

MEXC’s campaign followed a series of USD1-related promotions across the sector, including spot and futures pair listings, staking incentives, deposit rewards and holder campaigns. The exchange’s 0-fee model has been central to its pitch, particularly as retail and high-frequency traders scrutinise transaction costs in a market where spreads, funding rates and execution quality can materially affect returns.

Futures trading remains one of the most competitive segments in crypto markets. Exchanges use deep liquidity, promotional fee structures and reward programmes to secure order flow, while users seek venues that combine low costs with broad token access. MEXC says it offers access to more than 3,000 digital assets and serves users across more than 170 markets, placing its USD1 campaign within a broader effort to capture global participation in derivatives trading.

The event also reflects the wider push by exchanges to turn stablecoin adoption into a product ecosystem. Rather than listing a dollar token and waiting for organic use, platforms are increasingly linking stablecoins to collateral functions, futures pairs, staking products and trading competitions. That strategy can accelerate liquidity, but it also raises questions about whether volumes generated during promotional periods can be sustained once incentives are reduced or withdrawn.

USD1’s growth has unfolded against a backdrop of tighter scrutiny of stablecoins. Regulators in major financial centres are moving to define reserve quality, redemption rights, issuer obligations and consumer protections. Stablecoins have become a central part of crypto market structure because they serve as settlement assets, collateral and on-chain liquidity instruments, but authorities remain focused on transparency, systemic risk and the potential for rapid withdrawals during market stress.

For MEXC, the conclusion of the USD1 campaign offers evidence that stablecoin-linked events can generate measurable user engagement. The jump from earlier participation levels to more than 161,000 users at closure suggests that incentives tied to trading fees and rewards can expand activity quickly, particularly among users seeking alternatives to USDT- or USDC-denominated trading pairs.

Market participants will now assess whether USD1 can hold momentum beyond event-driven activity. A stablecoin’s utility depends not only on its peg but also on redemption confidence, liquidity depth, exchange support, custody arrangements and the breadth of integrations across decentralised and centralised finance. Sustained use in futures collateral and spot pairs would strengthen USD1’s role, while thinner liquidity or reduced incentives could limit its appeal.

Arabian Post – Crypto News Network