- The market capitalization of Binance USD stablecoin (USD) has dropped by $2.45 trillion.
- More than $2.37 trillion has been transferred from BUSD (USDT) to Tether(USDT).
- In the wake of regulatory changes, USD Coin (USDC), has seen its market cap drop by $739 million.
Binance CEO Changpeng ‘CZ’ Zhao says the Tether has benefited most from the recent regulatory action against Binance USD (BUSD) and its issuer Paxos. CZ reiterates, however, that Binance does NOT issue BUSD.
BUSD has seen $2.37 billion move to USDT, which is more than $2.37 Billion
As the negative impact of the order stopping Paxos from issuing BUSD jolted the crypto market, the flow of funds from the Binance branded dollar-pegged stablecoin ended with the USDT market capitalization gaining as BUSD’s declined.
In a tweet on Friday, Zhao noted that BUSD’s market cap had so far declined by over $2.45 billion and that most of it has gone into Tether’s stablecoin. Binance chief Zhao stated that USDT has absorbed at least $2.37 trillion in BUSD value, as traders moved capital from the Paxos-issued token.
The BUSD market cap fell by $2.45B (from 16.1B and 13.7B as at now) and has shifted to USDT.
USDT marketcap +2.37B (From 67.8B – 70.1B)
USDC also fell -739M (from 42.3% to 41.5B).
The landscape is changing.
Binance is not authorized to issue USD. pic.twitter.com/kVrZUYjuOh
— CZ 🔶 Binance (@cz_binance) February 17, 2023
According to Zhao, there’s a shift in the stablecoin market and the rotation of capital into the world’s largest stablecoin is an indication of that change.
Although BUSD has managed to regain its dollar peg at the time of writing, traders now see USDT as a better option due to the negative regulatory crackdown.
Tether’s release of another $1 billion of USDT recently points to this outlook and as Zhao acknowledges, even USD Coin (USDC) has seen its market cap drop by over 739 million over the past few days.
Binance reportedly has issued $50 million worth of True USD (TUSD), stablecoin. This is helping to boost the TrueFi (TRU), price. The token traded at $0.084 at the time of writing. It had gained an incredible 88% over the last 24 hours.
Share this article