140,000,000 BUSD Burnt At Paxos Treasury; Is the BUSD Era Over?
- Binance USD (BUSD) slips out of the top ten by capitalization, while Tether (USDT) controls more than half of the market.
- The current supply of BUSD is just roughly 10.98 billion tokens, a reduction of nearly 31% in the last 30 days due to the inability to manufacture new coins and Paxos’ ongoing burning of coins.
Recently, 140,000,000 BUSD were burned at the Paxos Treasury, causing the Binance Dollar (BUSD) to fall out of the top 10 by capitalization.
As Paxos received a death sentence from US regulators, BUSD is rapidly disappearing off the market’s stablecoin map. Although Paxos is committed to maintaining the margin and converting BUSD to cash, the market share of this stablecoin is clearly declining. The current supply of this stablecoin is just roughly 10.98 billion tokens, a reduction of nearly 31% in the last 30 days due to the inability to manufacture new coins and Paxos’ ongoing burning of coins.
This represents the stablecoin’s market capitalization ranking directly. Prior to the incident, BUSD ranked sixth in terms of market value, but it has since dropped out of the top 10, landing in 11th position, according to CoinGecko. Tether (USDT) is the coin that benefits the most when it maintains its unique status. The entire supply of USDT has climbed by around 5% during the last 30 days, according to DefiLlama, increasing the stablecoin’s capitalisation to $70.9 billion. Tether directly controls a 52.3% market share, with the overall valuation of the stablecoin array dropping at around $135.4 billion.
Circle’s Dollar Coin (USDC) comes in second position. Despite allegations of indicating Paxos-BUSD to New York officials, Circle has remained steadfast in recent months. The USDC market capitalisation is now about 42.2 billion USD, representing 31.2% of the market. TrueUSD is another stablecoin that is gaining popularity (TUSD). Binance appears to be changing its emphasis to TUSD after being unable to do business with BUSD, as Binance issued a big number of stablecoin TUSD on February 17. TUSD supply climbed by 16% during the 30-day period, bringing the capitalization to $1.1 billion. TrueUSD currently has a 0.8% market share, placing fifth behind USDT, USDC, BUSD, and DAI.
The stablecoin war is expected to heat up in the near future as new players enter the fray, such as Curve’s crvUSD, Aave’s GHO, and Fantom’s fUSD.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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