Capitalization of the Binance cryptocurrency exchange's stablecoin fell by $5 billion in 2 weeks
Capitalization of the BUSD cryptocurrency exchange Binance's stablecoin fell by $5 billion in two weeks
After the U.S. regulator banned the issuance of Binance USD, the market capitalization of the asset decreased by 32%
Stablecoin exchange Binance (BUSD)'s supply fell by $5 billion in two weeks. According to CoinMarketCap, on February 13, the market capitalization of the asset decreased by 32% from $16.1 billion to $10.97 billion.
Paxos stopped working with Binance on BUSD, and the issuance of the Stablecoin was halted on February 21.
The issuance of tokens occurred as follows: when a customer deposited an amount in USD, Paxos would emit the corresponding amount in BUSD. If the customer deposits BUSD, he receives dollars in return, and the stablecoins are redeemed or, as it is commonly said in the crypto community, burned. Paxos will support the redemption of stablecoins until at least February 2024.
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After the BUSD ban, Binance CEO Changpeng Zhao acknowledged that the asset's capitalization will now only fall, and the exchange anticipates that users will switch to other stablecoins.
Last week, Zhao noted BUSD's shrinking supply and drew attention to the fact that for the most part, users are converting their assets to USDT. When the market capitalization of BUSD fell by $2.45 billion, the same figure for USDT increased by $2.37 billion.