CDS Crypto News Binance Stablecoin BUSD Starts Stablecoin Wars
Crypto News

Binance Stablecoin BUSD Starts Stablecoin Wars

362
Declining Demand for Binance's BUSD Represents New Chapter in Stablecoin Wars
Declining Demand for Binance's BUSD Represents New Chapter in Stablecoin Wars

BUSD, the USD-based stablecoin of the world’s largest centralized cryptocurrency exchange Binance, has reached net redemption of $ 5.5 billion.

Rival Stablecoins Are Rising

Binance has made great efforts to promote its stablecoin, BUSD, over the past year and to put it ahead of its competitors. Unfortunately, due to the FTX fiasco and some events involving Binance, trust in centralized exchanges has decreased.

According to data from Coingecko, the market cap of BUSD dropped from $22.1 billion at the beginning of December 2022 to $16.4 billion, the lowest level in 2022. Despite these data, BUSD maintains its 3rd place in the ranking of the largest stablecoins by market value, while BUSD continues to assert itself against its competitors.

Pegged BUSD

BUSD is issued by Paxos Trust Company on behalf of Binance and pegged to USD. The biggest competitors in Binance’s stablecoin plan are Tether’s USDT and Circle’s USDC stablecoins. The purpose of such stablecoins is to facilitate the conversion and trading of fiat currencies into crypto.

Binance has announced in recent months that some of the stablecoins on its exchange will be automatically converted to BUSD. After Binance’s move, BUSD’s valuation of 18 billion dollars increased to 23 billion dollars over time. But the report on crypto reserves by audit firm Mazars, and the FTX crash in November, left users worried and forced to withdraw.

BUSD&USDT&USDC
BUSD&USDT&USDC

2022 Stablecoin Wars

After the setback experienced by BUSD, the valuation of rival stablecoins increased. According to data from Coingecko, after the decline of BUSD, the total market capitalization of USDT increased by about $ 800 million to $ 66.3 billion, while the value of USDC, another competing stablecoin, increased by $ 1 billion to $ 65.5 billion. In addition, in 2022, the BUSD market value increased by 20% and the USDC market value increased by 4%, while the USDT market value decreased by 15%.

Reference

www.coindesk.com

Written by
oguz

The author is a political science and public administration student at Kocaeli University. He is also studying Management Information Systems at Anadolu University. He met Blockchain technology and Cryptocurrencies for the first time in 2019. Interested in cryptocurrencies for over 2 years. In addition he provides E-commerce and social media marketing services.

Leave a comment

Leave a Reply

Related Articles

BUIDL Accelerates Tokenization of Over $1 Billion in US Treasury Bonds

Blackrocks' BUIDL accelerates tokenization of US treasuries on-chain.

Michael Patryn UWO Investigation: QuadrigaCX Co-Founder’s Fortune May Be Seized

Under the Michael Patryn UWO investigation, Patryn has one month to prove...

Ethereum Hits One Million Validators Milestone: Concerns Over Security and Decentralization Arise

Ethereum Hits One Million Validators Milestone: Concerns Over Security and Decentralization Arise

Ethereum’s Validator Surge: Community Divided Over 1 Million Milestone

While additional validators may enhance security, some community members are concerned that...