BUSD Facing Competition: Binance’s Stablecoin Loses Market Share
Even Binance seems to have given up on the once-dominant stablecoin that was tethered to the dollar and was offered by the cryptocurrency exchange.
According to data from DeFiLlama, the market value of BUSD has decreased by 16.14% over the last month.
BUSD is underperforming when compared to other well-known stablecoins due to USDT domination. Blockworks reports that on Sunday, August 6, Tether’s leading stablecoin has a 67.17% market share.
The exchange had 97 BUSD trading pairs listed within a year. That number reached a high of more than 300.
Paxos ended its partnership with Binance in February and stopped minting BUSD at the request of the New York Department of Financial Services. Binance CEO Changpeng Zhao claimed the NYDFS had capped the potential supply at $23 billion, which he linked to rival USDT’s growth. Binance has changed its course on BUSD, removing eight spot trading pairs and listing only 289 pairs, compared to 352 USDT trading pairs. Data shows a nearly 81% decline in BUSD circulating supply in the past year alone.
(With inputs from Shikha Singh)
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