What Frax USD is designed to do
Frax USD (FRXUSD) is a fiat-backed stablecoin, currently ranked 272nd by market capitalization among the assets we track. Frax USD is a fiat-backed stablecoin: each token is meant to be redeemable for a reference currency held in reserve, so its job is to stay flat, not to appreciate. It is plumbing for the crypto economy rather than a bet on price.
Frax USD (FRXUSD) is a fully decentralized, algorithmic stablecoin that aims to maintain a stable value by leveraging a fractional reserve system. It combines the benefits of decentralized finance with on-chain governance for improved stability and transparency.
How the peg is meant to hold
A fiat-backed stablecoin holds its peg through redemption: if FRXUSD trades below its target, arbitrageurs buy it cheap and redeem at par, and vice versa. That arbitrage only works if redemption is real and reserves are sufficient.
Background & fundamentals
Its codebase is open-source, meaning the implementation can be audited rather than taken on trust. In sector terms it is most often filed under Stablecoin, Ethereum (ETH) Token (ERC-20), and Arbitrum Ecosystem.
Where Frax USD sits in the market
Trading around $1.00, Frax USD carries a market capitalization of $82.79M. Around $1.54M changes hands across exchanges in a typical 24-hour window. That is a turnover of about 1.86% of the float — on the quieter side, which can mean thinner liquidity for large orders.
Frax USD carries no fixed maximum supply; issuance follows a programmatic schedule rather than a hard cap. The token is roughly -38% under its record of $1.61 — a meaningful but not catastrophic drawdown.
What the price history shows
The tape currently reads 24-hour +0.22%, 7-day -0.10%.
Volatility profile
Recent action puts Frax USD in the Low-volatility band — it has been relatively stable, with moves typical of large-cap, mature assets.
How to evaluate a stablecoin like Frax USD
For an asset of this type, three lenses matter most:
- Reserve quality — what backs FRXUSD — cash and short Treasuries are safer than commercial paper or crypto collateral — and who attests to it.
- Redemption access — whether holders can actually redeem at par, and how quickly, under stress.
- Regulatory standing — the issuer's jurisdiction and licensing, which increasingly determines which stablecoins survive at scale.
This page pulls live market data, on-chain stats where available, exchange-by-exchange volume, and our forecast model into one view so you can work through those questions in a single place. None of it is investment advice — it is a structured starting point for your own research.
