BUSD Rises As Stablecoin Wars Heat Up
Binance has started liquidating its USDC holdings and using the proceeds to create its own stablecoin, BUSD.
According to CoinGecko, its supply has reached an all-time high of $21.7 billion. This accounts for almost 15% of the $147 billion global stablecoin market worth.
The percentage of trades in BUSD so far this month is 22%, he continued. Binance declared in September that it would exchange new deposits and outstanding balances of USDC, USDP, and TUSD for BUSD.
Two-round Stablecoin Wars – BUSD
Crypto billionaire and FTX CEO Sam Bankman-Fried commented that the conversion from USDC into BUSD has heralded the “Second Great Stablecoin War.”
He noted that the first one occurred in 2018, with USDT and USDC triumphing against TUSD, GUSD, and USDP.
SBF went on to say that this time, there are positive interest rates, which implies stablecoins will generate more income. After Luna and after DAI holding USDC, he stated, “It’ll be intriguing to watch what emerges from the non-fiat-backed-stablecoin area,” before adding, “It will be something interest-bearing or something with some upside.”
Although USDT, the stablecoin issued by Tether, continues to hold the top spot in terms of market capitalization, institutional investors are increasingly switching to USDC, the stablecoin issued by rival Circle.
Stablecoins make up three of the top ten crypto assets by market cap, with a combined valuation of $134 billion, not far behind Ethereum.
Stablecoin regulations are still a long way off in the United States. Congress appears to be in no rush to address the issues despite the Biden administration pushing for a little more urgency.
Last week, Congressman Jim Himes said, “It’s probably not happening in early 2023,” with reference to the long-awaited crypto regulations.
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