BUSD Suffers Capitalization Blow as Users Migrate to USDT

Azeez Mustapha

Updated:

Unlock Daily Forex Signals

Select a Plan

£39

1 - month
Subscription

Select

£89

3 - month
Subscription

Select

£129

6 - month
Subscription

Select

£399

Lifetime
Subscription

Select

£50

Separate Swing Trading Group

Select

Or

Get VIP forex signals, VIP crypto signals, swing signals, and forex course free for lifetime.

Just open an account with one our affiliate broker and make a minimum deposit: 250 USD.

Email [email protected] with a screenshot of funds on account to get access!

Sponsored by

Sponsored Sponsored
Checkmark

Service for copy trading. Our Algo automatically opens and closes trades.

Checkmark

The L2T Algo provides highly profitable signals with minimal risk.

Checkmark

24/7 cryptocurrency trading. While you sleep, we trade.

Checkmark

10 minute setup with substantial advantages. The manual is provided with the purchase.

Checkmark

79% Success rate. Our outcomes will excite you.

Checkmark

Up to 70 trades per month. There are more than 5 pairs available.

Checkmark

Monthly subscriptions begin at £58.



Binance USD (BUSD) stablecoin is facing a decrease in market capitalization as more users migrate to Tether’s USDT. This came as the New York Department of Financial Services ordered Paxos Trust Co., the issuer of BUSD, to stop creating more of Binance’s dollar-pegged stablecoin. Binance’s CEO, Changpeng “CZ” Zhao, tweeted that users are already migrating to other stablecoins, and Binance will adjust its product offering accordingly.

However, the firm will still support BUSD in the meantime. This uncertainty in BUSD’s future has led to a fall in BUSD’s market cap, while USDT’s market cap has risen to $68.58 billion on February 13th. Moreover, data indicate that USDT accounted for almost 14% of 3pool’s TVL in Curve, with a TVL of $537 million. This points to the fact that more users are converting their stablecoins to USDT.

USDT Stablecoin Market Dominance Nearing 50%

The recovery in the crypto market in January was supported by increased USDT transactions, helping to recover the USDT market cap. Paolo Ardoino, Tether’s CTO, recently took to Twitter to announce that USDT’s stablecoin market share is nearing 50%, which is the first time in the last 14 months. Tether also reported a $700 million profit in the fourth quarter, significantly reducing its secured loans and eliminating its commercial paper exposure.

As Binance moves away from using BUSD as the primary trading pair, it remains to be seen how it will adjust its products to cope with the decline in BUSD’s market capitalization. This shift in demand towards USDT could have implications for Binance’s market position as users flock to the leading stablecoin. Meanwhile, Binance is continuing to support BUSD for the time being, but the future of the stablecoin remains uncertain in light of the regulatory actions against Paxos Trust Co.

 

You can purchase Lucky Block here. Buy LBLOCK

 

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$250 Min Deposit
9.8
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$50 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9

Share with other traders!

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.

Leave a Reply

Your email address will not be published. Required fields are marked *