Binance USD (BUSD) supply has fallen by 18.2% (around $2.27 billion) to $10.84 billion over the past seven days. of crypto slate data.
Stablecoins have dropped out of the top 10 cryptocurrencies by market capitalization due to massive redemptions, according to CoinGecko.
During this period, Binance burned $2 billion of idle BUSD on the BNB chain on February 22nd and released BUSD collateral on the Ethereum (ETH) chain.
Since BUSD issuer Paxos was ordered by the New York Department of Financial Services (NYDFS) to shut down other mints of stablecoins on Feb. 13, BUSD has seen a supply tank of around $5 billion.
Following the news, blockchain analytics firm Santiment said: report The BUSD whale was rapidly dumping tokens.
The stablecoin temporarily traded at a discount against USDT on February 23, according to Kaiko dataOn top of that, BUSD reportedly fell to a low of $0.20 against the DAI stablecoin on Feb. 22 as the stablecoin’s liquidity declined.
Stablecoin Rival Profits
Meanwhile, BUSD’s market cap decline has benefited rival stablecoins such as Circle’s USD Coin, Tether’s USDT, and TrueUSD (TUSD). All of these registered increases in the last seven days.
USDC’s market cap increased by $827 million, TUSD by $131 million, and USDT by $466 million. crypto slate data.
Binance CEO Changpeng Zhao (CZ) said “the landscape is changing” for stablecoins. According to CZ, USDT was the major winner as its market cap was rising. After the event, USDT dominance rose to its highest level since May 2022.
However, the lesser-known TUSD stablecoin has also recently started adopting. His Dormant TUSD Coin Moved To Exchanges, Crypto Exchange Supply Hit 73% For First Time Since June 2021, Santiment Said.
